My workaround was to search out old drivers for vista and install those on Win 7.
I found that vista drivers 188.8.131.523 (from 2007!) support 3840x1200 resolution on my Intel 965 express chipset and work with the Matrox DualHead2Go digital edition.
I do not see why this support had to be removed from newer version drivers.
Yes, I also noticed that the newer drivers don't recognize the higher resolutions on devices such as the Matrox Triplehead2Go.
I'm trying to find the older driver. Anyone know how to obtain it? Please make the new drivers work with the Matrox adapters.