I dont think thats the issue, I think that is for "text mode", I get the same output, but, then when X comes up, the XFree config gets loaded and the GUI changes into higher resolution... Or so it does in my setup... I know I am running in at least 12xx by 1024, possibly even the 16xx by whatever - I have found by "poking" around in "Control Center", under the "Display" area, can mess up my driver and force it down to something like 800 x 600, yuck!

If I have to examine my settings, I use "Info Center", less chance of KDE changing something on my display, and forcing me down to lower resolutions...

No clue why its not working - I think I'm using the "newest" NVidia drivers from the site, and have forced them into the kernel - can you run glxgears ? If you dont have 3d active, it wont run at all...