vixy27 I also have the same chipset, same Linux distribution, same manufacturer of monitor, and same problem. I'm also a Linux newbie. You will have to make a trade off. Do you want color or resolution? At 1024x768 it's probably telling you, you can only get 8 bit color depth.
I'm assuming you don't have a graphics card either. If you want resolution AND color, you will have to get a graphics card. Mandrake's site has a useful list of compatable graphics cards.
Post again to let me know how things worked out.