Setting the resolution depens on your windows version. On Windows 7 you can set it by right clicking empty space on your desktop and selecting "Screen resolution" and then just selecting something lower on the Resolution drop down and clicking Apply. Try selecting something around ".... x 1000" for example.
On earlier versions of Windows I think there's no "Screen resolution" option, but just "Properties" when right clicking on the desktop. You should then be able to find the resolution settings somewhere in the window that opens.
Don't use the compatibility thing.