Also, you can't just set a resolution in windowed mode arbitrarily and expect it to work. A resolution must match an entry returned by getResolutionList(%device), otherwise it goes into "safemode" of 960x600, or whatever it is you're seeing (I believe it should be 800x600).
echo(getResolutionList("OpenGL")); in the console will show you all the resolutions supported by your OpenGL (or replace with "D3D") driver, the same list in the dropdown menu of options.
If it isn't one of those, in that particular format ("1024 768 16" for example) it won't work. You might also have the problem if the 16/32 doesn't match the bpp of your desktop.
2GB Totally Free Online Backup - Compliments of Mozy