You have fglrx installed and the intel gfx hardware enabled. Disable it
from the BIOS or uninstall fglrx, you can't have both.
** Changed in: xorg (Ubuntu)
Status: New => Invalid
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which is subscribed to xorg in Ubuntu.
https://bugs.launchpad.net/bugs/825926
Title:
Display resolution limited to 1024x768
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https://bugs.launchpad.net/ubuntu/+source/xorg/+bug/825926/+subscriptions
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