My New Monitor

I just bought an Acer 23' monitor and not too happy with the wide screen view.

Pictures , videos etc., appear squat..... just like my 32" Samsung TV on the 16.9 view.

My PC is about 5 years old and I am wondering if this has something to do with my video card which according to my system info is ....S3 Graphics ProSavageDDR (Microsoft Corporation)...32M on board

When I change the monitor screen size I get a small square view which is okay but that defeats the whole purpose of buying a bigger monitor. My screen resolution is 1024x768. Making it higher doesn't help

Thanks for any help