Guess what ? I think we found the culprit !
xresprobe gives 800x600 as your monitor's maximal resolution and
therefore the xorg.conf is badly automatically configured.
** Changed in: xresprobe (Ubuntu)
Sourcepackagename: None => xresprobe
Status: Unconfirmed => Confirmed
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SIS 6326 (and/or Monitor): low-res configuration in Kubuntu 7.10
https://bugs.launchpad.net/bugs/108843
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