i don't want to hi-jack the thread but I do have similar problem.
I am running redhat 9 in my Dell Inspiron 8200 notbook which has an nVidia GeForce 4 440 Go video card. After installing the appropriate driver from nvidia, my resolution is limited to 800x600. whenever i try to change the display settings, I receive this notification:
Display settings changed
You need to log out and restart the X server for the changes to take effect.
Configuration was written to /etc/X11/XF86Config, original configuration saved as /etc/X11/XF86Config.backup.
but when i try to logout and login again, I even restarted the system, it is still going back to 800x600 resolution,
Need help. Thanks.