I believe your netbook has a GPU integrated with the Atom CPU, it's designed by PowerVR and uses a different driver. (Attach the output of lspci next time, it's more reliable than what we can find elsewhere.)
The vesa driver is used only when other installed drivers don't work (on many machines using the nomodeset kernel option would cause it), it doesn't support modern resolutions. There are newer unofficial kernels at http://jxself.org/linux-libre/ that support your device (without 3d acceleration). A Trisquel user reported a similar netbook at http://h-node.org/notebooks/view/en/651/Eee-PC-X101CH.
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