I always thought my monitor was capable of 1024X768 max, and that was a good resolution for me on a 17".  The other day I was messing around with the Intel Graphics Controler properties (Integrated video).  I right clicked the desktop, selected settings (currently 1024X768 ), then clicked advanced, then the Intel Graphics tech. tab, then the graphics properties button, and brought up the Graphics controler properties.  In there, I set it for a max resolution of 1280X1024 for the heck of it, kept refresh at 60Hz, and I thought left the colors at true color.  When I ok'ed/applied everything and backed out, I had the option of running at 1152X864 on my display properties on the main desktop settings screen.  I played FS 2002 for while in this resolution, enjoying the lesser jaggies.  A while later, I did some more stuff in the graphics properties from the desk top, and now I've lost the ability to select the 1152X864 resolution on both the desktop options and in FS.  Anyone know what I should do to try and get that option back?  I tried everything I did in the first place to get.  Or at least I think I did it all the same.   Am I missing something here?  I'm about to get a graphics card and would love to be able to play at the higher resolution.

What exactly did you mean by needing to distinguish between Desktop and FS 2002?  If it was for when I could select the higher resolution, I was able to get it both in the game, and on windows desktop.  I also normally run at 24 bit.  What is the difference to going to 16 bit, or even 32 bit (I've noticed some games require 32 bit).

Not sure how this will relate to you, but I'll give you my stuff anyway.......
I run a 19" monitor and with my Win98SE, I run my desktop at 1024x768 and 32 bit True Colour.....
I have a GeForce 4 MX440SE 64 meg vid card.....
When I fly in FS2002 I have recently discovered I can fly full screen, at 1600x1200 16 bit, and have taken my jaggies to a minimum........this is with all my sliders maxed, other than ATC which I usually don't run too often.
This is making me happy and when I need to post images to here, I use Photoshop to bring down my shots to the requirements of this forum. It doesn't affect the quality of the image unless I specify a reduction to bring my file size smaller.  8)    8)

Keep trying what you did or what you think you did. If you did it once, you will do it again, eventually.

A fact about your resolutions. What you set your card to is the resolution you will be displaying in the game in the Windowed view. The "In Game" resolution setting will only apply when you run the sim in full view, the "ALT + ENTER" Full View. This Full View does wonders on my wifes machine which has XP and integrated video. Windowed View is very bad.

Word of advice. Make absolutely sure your Monitor supports those higher resolutions. Just because you can get it up there, doesn't mean she a gonna like it!!

As Fireman said, be careful you don't kill your monitor with the higher resolutions... EEEEK!!! 

Also, your Frame Rates will suffer at the higher resolutions, so....... better if you stick to 1024 x 768 or less for the time being. The higher res. are good for screenshots though!   

I have seen this happen before, and don't know the answer, it's as if windows says, HEY! I can't handle this! It always happens to me when systems are stretched to capacity.