have you looked at the Spice ?

http://www.linux-kvm.org/page/SPICE

what i get from my quick google read on this was that QXL vGPU driver found in 
Spice offers higher fidelity than other traditional virtual video drivers

other reoccurring theme was something about that the virtual driver res can't 
be bigger than your host OS res or the host graphics card is going to like it

from what it sounds like Spice handles the resolution dynamically based on the 
host and guest support - but i'm no export on spice - something to look at if 
you haven't already
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