hey its not my fault you have a crap monitor
Seriously though, 1024 is waaaaaaaay too small for a modern desktop. Especially if you do any form of design, use a programming environment or any CGI. Infact using 3d studio max /maya... hell even Visual Studio @ that res would be futile
It would be annoying anyways.
Seriously though, its just because your resolution is too small, the only thing that can be done is to shrink the picture lower than the size it should be using javascript or for you to install the mozilla extension to resize images
As said, switch your theme to galaxian. That has javascript resize of images so that will probably be better... until you get a bigger monitor that is