I just ran into this as well. I set up an external monitor (1600x1200)
to clone my laptop screen (1400x1050) with nvidia-settings. All was
well until I went to display in System Settings. Then I got what's in
the screenshot here. Going to nvidia-settings and changing the
resolution to 1400x1050, then back to 1600x1200 fixed it.
** Changed in: kde4libs (Ubuntu)
Sourcepackagename: kubuntu-kde4-meta => kde4libs
Status: New => Confirmed
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Screen resolution incorrectly detected with external monitor in kde4
https://bugs.launchpad.net/bugs/211682
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