Not really sure what you want to do. Are you talking about changing the resolution in gnome or the command prompt? If you are trying to change the resolution in gnome easiest way is to edit xorg.conf at least for me. If you are talking about command prompt I dont know how to change that, since I used to use a crt and everything looked fine. Also uninstalling gnome would not help, from what it sounds like is that gnome is coming up at the wrong resolution then your lcd's native rez.
Also when you mean virtual install are you talking about vmware?
easiest way to change the resolution for me is to go gedit /etc/X11/xorg.conf or nano, what ever you like, and do this.
look at this section here, this is what the end of my config looks like. I added the bold, my native resolution you should add your native resoulution so it looks normal.
Code:
Section "Screen"
Identifier "Default Screen"
Device "nVidia Corporation G70 [GeForce 7600 GT]"
Monitor "DELL E228WFP"
DefaultDepth 24
Option "AddARGBVisuals" "True"
Option "AddARGBGLXVisuals" "True"
Option "NoLogo" "True"
SubSection "Display"
Depth 1
Modes "1680x1050" "1280x1024" "1152x864" "1024x768" "800x600" "720x400" "640x480"
EndSubSection
SubSection "Display"
Depth 4
Modes "1680x1050" "1280x1024" "1152x864" "1024x768" "800x600" "720x400" "640x480"
EndSubSection
SubSection "Display"
Depth 8
Modes "1680x1050" "1280x1024" "1152x864" "1024x768" "800x600" "720x400" "640x480"
EndSubSection
SubSection "Display"
Depth 15
Modes "1680x1050" "1280x1024" "1152x864" "1024x768" "800x600" "720x400" "640x480"
EndSubSection
SubSection "Display"
Depth 16
Modes "1680x1050" "1280x1024" "1152x864" "1024x768" "800x600" "720x400" "640x480"
EndSubSection
SubSection "Display"
Depth 24
Modes "1680x1050" "1280x1024" "1152x864" "1024x768" "800x600" "720x400" "640x480"
EndSubSection
EndSection
After editing that restart your xserver with control+alt+backspace and you should have the option to change to your new resolution in gnome, or it should just be in that new resolution. Also you should backup your xorg.conf before doing any changes.