Dell E196FP Optimum Resolution Question

I just got my Dell 410 and when I try and run the E196FP monitor at 1280x1024 resolution the fonts look almost too sharp and the on screen image appears to be squished vertically. I was wondering if there are any setting changes I need to apply to get the monitor to look good at this resolution. I am running an Nvida 9600GS card with the drivers that came with the computer. Thanks for any help.

Phil