I don't know if I will be of any help...
First of all a simple question, is your display (CRT, TFT, laptop?) compatible with that screen resolution?
Second, you can easily change this at System->Preferences->"Screen resolution". If the 1280x1024 option does not show most probably when you installed Ubuntu and configured the x-server you didn't choose this as an option. You can reconfigure the x-server but I do not remember exactly how and I only did this in Debian... in Debian you must open a console and then write:
dkpg-reconfigue x-server (or something like that)
You will surely find the answer in the forum, if not just google it.
Hope this helps
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