Once I successfully set a higher resolution using the xrandr utility. It was on Scientific Linux 6, but the procedure should be the same on Ubuntu. You need xrandr provided by x11-xserver-utils and cvt provided by xserver-xorg-core. Here is what I've done:
Code:
#
# Check the current available resolution
#
xrandr -q
#
# Compute a new mode (1280x1024)
#
cvt 1280 1024
#
# Define the new mode (use the Modeline given by the previous command)
#
xrandr --newmode "1280x1024_60.00" 109.00 1280 1368 1496 1712 1024 1027 1034 1063 -hsync +vsync
#
# Add the new mode
#
xrandr --addmode VGA1 1280x1024_60.00
#
# Test the new resolution
#
xrandr --output VGA1 --mode 1280x1024_60.00
If all goes well you have to make changes permanent, by editing /etc/gdm/Init/Default (I assume you use GNOME) and add the last three xrandr commands as above. Then in System --> Preferences --> Display choose the new resolution and apply. Hope this helps.