Windows 7: Weird problem with philips 105e1 I'm not sure if its a

I'm not sure if its a problem with my monitor driver or graphics card driver. After I installed win 7 x64, windows sets my monitor driver to generic non-pnp monitor, supporting resolutions up to 1600x1200 and refresh rates up to 200 Hz, but my monitor actually supports resolutions up to 1024x768 and refresh rate of 120Hz. If I manually install my monitor driver from the list of incompatible drivers, the 'screen resolution' dialog box shows :
Display:1.display device on:VGA
It also shows that my monitor supports resolutions up to 1600x1200!
My graphics card in GeForce 8500GT and driver version is 195.62.

This is generally not a problem as I manually set resolution to 800x600 and refresh rate to 85Hz. but when I play some games or select a higher resolution from the game, I get a black screen. This problem persists even I start the game after selecting a higher resolution from the 'screen resolution' dialog box.

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