Sounds like perhaps the virtual buffer is not resizing after being set to 1600x1600, however this card's max texture buffer size is way larger than that so it's not a hardware limitation.
Try sticking this in your /etc/X11/xorg.conf, restarting X, and see if you can set it then: Section "Device" Identifier "Configured Video Device" EndSection Section "Monitor" Identifier "Configured Monitor" EndSection Section "Screen" Identifier "Default Screen" Monitor "Configured Monitor" Device "Configured Video Device" SubSection "Display" Virtual 2966 1668 EndSubSection EndSection ** Changed in: xorg-server (Ubuntu) Status: New => Incomplete -- You received this bug notification because you are a member of Ubuntu-X, which is subscribed to xorg-server in Ubuntu. https://bugs.launchpad.net/bugs/873747 Title: Two displays, proper resolution cannot be set! To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/xorg-server/+bug/873747/+subscriptions _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp