Resolution issues with new Acer X193W monitor

Computer is an emachines T2698 (XP Home) with onboard video

Just received a new Acer X193W monitor (max resolution 1440x900)

http://www.newegg.com/Product/Prod [...] 6824009151

Initially what was being displayed was stretched to fill the screen. There was no option in the display settings for 1440.

Upgraded video drivers from nvidia - rebooted. Had display choices for 1440x900 but when it was not correct. Putting the resolution back to the 4:3 setting it would display a blue bar across the bottom of the screen and then show the start of a second screen on the right hand side of the display.

Also tried new chipset drivers from emachines - same results.

Have done system restores and tried re-install of drivers - same results.

Ideas?