You don't need drivers for displays. Only the horizontal and vertical refresh rates. Just like you, I replaced my CRT with an LCD two days ago.
I simply choose Generic Laptop Display Panel 1280x1024 and used the default settings. I changed the HorizSync and VertRefresh numbers to match the min/max given in the LCD monitor manual, but remember XFree86 will use the highest vertical refresh rate it can, which caused my display to be 1280x1024 75Hz. The manual suggested 60Hz, presumably because anything higher is useless on an LCD. So, I just stuck with the generic defaults; my monitor OSD menu says I'm at 60Hz.
Your display section should have the new 1280 resolution at the front of the Modes list:
SubSection "Display"
Depth 16
Modes "1280x1024" "1152x864" "1024x768" "800x600" "640x480"
EndSubSection
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