OK, so I found a fix, but I still dont think it was the proper way. I just edited the xorg.conf file and removed the 1280x960 resolution from the config. But what I wanted to do was find the file that actually holds the preference and tells X which resolution to start in 800, 1024 ect....
Oh well at least I got it running!!!
Now if I could just get rid of that damn up2date icon in the tray!!!!