I had also this problem
from #xubuntu TheSheep helped me
heres somthing he gave me to read
https://wiki.ubuntu.com/X/Config/Resolution#Try%20this%20first
https://wiki.ubuntu.com/X/Troubleshooting/Resolution#Problem:%20%20Autodetection%20results%20in%20reduced%20resolutions%20available
i was like wtf
so he gave me this to put in sudo mousepad /etc/X11/xorg.conf
if u dont have mousepad use gedit
Section "Device"
Identifier "Configured Video Device"
Option "NoDDC" "true"
Option "IgnoreEDID" "true"
EndSection
Section "Monitor"
Identifier "Configured Monitor"
HorizSync 28.0 - 80.0
VertRefresh 48.0 - 75.0
EndSection
Section "Screen"
Identifier "Default Screen"
Monitor "Configured Monitor"
Device "Configured Video Device"
EndSection
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Missing xorg.conf, max resolution 800x600 in Karmic, Intel Video Card
https://bugs.launchpad.net/bugs/461953
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