OK the running of the DXDIAG seemed to do the trick.
HOWEVER, a small panic at first came to the fore when going to address you indicated revealed no such file as DXDIAG. For those like me who have no clue as to this sort of stuff the key is to tell people to go to the Run and then just enter DXDIAG and go through the tests.
For the record I have Radeon7000 RadeaonVE as my video driver.
I did go back to the old CMBO and then it allowed me to go to 1024x728 or whatever.
So mission accomplished thank you.