Originally Posted by Regeneration
I believe your monitor has an invalid EDID data and that's why Windows 7 fails to detect its capabilities and resolutions. To verify my theory, you'll need to use it with another operating system (Vista or Ubuntu).
Modern monitors should work out of the box without drivers (except of VGA drivers) via EDID (Extended display identification data).
I have to admit that I didn't even know about the existence of EDID before and I believe that Regeneration has found what seems to be rkahler problem.
A bit of google lead me to what will be the solution:
Solutions: rewrite the EDID data
The video card reads the EDID data from the monitor to get the capabilities of the monitor. Unfortunately, some monitors have less-than-stellar EDID data. Some LCD-TVs which are supposed to be compatible with computers through a DVI connection understate their maximum resolution in the EDID data. It doesn't make sense, but it has happened. In some cases, you can update the EDID data in the monitor by running a program on your computer. Most monitors can't do this but it's worth checking the monitor manufacturer's web site to see if they have any EDID patches for your monitor. These usually affect the maximum resolution which can be displayed but can sometimes solve other problems as well. If you know quite a bit about your monitor specifications then you can check your EDID data to make sure it matches what you know about the monitor. ViewSonic provides a handy program called EDID.EXE which can read your EDID data and display it in a readable format. You don't need a ViewSonic monitor to use it.