Welcome to the Org, Palmer!

I think the resolution issue on Win7 is a actually a memory issue. There is a fix you can try, but it will require some configuring and rebooting.
You want to set the maximum memory in the msconfig. Apparently the combo of Win 7 and lots of memory affects the potential resolutions MTW thinks is available. Details in these 2 posts:
Resalution issues - post 4
Cant play on windows 7 ? - post 11

I haven't personally had the problem, I'm running on Vista, but hopefully this works for you.