I understand that you are not able to set the resolution for your monitor to 1920x1080 that is native for it.
In regards to your inquire, the Intel(R) graphics controllers will only show the resolutions that are supported for the monitor, if the EDID (Extended display identification data) on the monitor does not detect the 1920x1080 resolution as supported, you wont be able to set it.
To correct this problem there are 2 possible workarounds, the first one will be to contact the monitor manufacturer and download the INF file for the monitor ( driver ), this way Windows* will recognize the 1920x1080 resolution as supported and you will be able to set it, or the second option will be to set a custom resolution. You can do this by pressing Ctrl+Alt+F12 and selecting custom modes. In there you will need to set the resolution supported by your monitor.
I managed to do a Windows XP installation on my DN2800MT board with SSD drive, SATA turnded on, and IDE compatibility mode. I then downloaded the Windows XP EMGD driver from the Intel download site, ran it through its paces, and got a driver with multiple modes, most of which are 16:9 as desired, and found a 16:9 mode compatible with my monitor in HDMI (but no audio) mode. Only problem is that graphics acceleration is only there for partial screen, not full-screen streaming video.
I know it is possible to do much better than that, because I downloaded the Windows 7 graphics driver and copied its graphics components into the graphics directory of my Windows XP EMGD driver, and these components are both compatible and executable under Windows XP. The only reason that users can not install the highly accelerated Windows 7 graphics driver in Windows XP is that the setup.exe program makes a few calls to kernel.dll that are specific to Windows 7 and Windows 8. If the setup program were re-written to eliminate or get around these calls in Windows XP, I think the Windows 7 driver would be installable under Windows XP.
As I repeat, I have copied the contents of the Windows 7 graphics driver directory into the Windows XP installation, and there is no complaint about incompatibility when, say, the tray service program executes on startup.
You can go ahead and download the video driver for Windows XP from: