Windows 7: Samsung Syncmaster B2030 - no option to set resolution to 1600 x 900

May or may not help but have you tried the monitor driver from Samsung?

Samsung

I found this forum thread that has information on installing a more capable driver from the chipset manufacturer instead of the dell approved one. Dell apparently does not support this mode in all it's machines and quite a few people have the same problem. There's an excellent chance the installation technique will work across different dell models.

Lattitude D620 1600X900 resolution doesn't show up for my monitor - Laptop Video Forum - Laptop - Dell Community

is having it at an incorrect resolution damaging the monitor?

I would have though so..but a quick google indicates lcd monitors aren't damaged..but you shouldn't be getting a picture either with a setting over your monitors specs.

Something seems to be out of whack.
Device manager shows B2030, Windows display manager shows SMB2230.
The SMB2230 supports up to 1920 x 1080 maximum.

Which monitor is it?
Do you have the SMB2230, but installed B2030 driver?

is it at all possible that the resolution and driver are correct?

SMB2230 could be the correct model, but with all PC components, sometimes they use the nearest rounded model to show that the software is installed eg/ i have a WINTV HVR 67XX capture card, but my installation driver says WINTV HVR 1100 DVBT.

SMB2230 = SyncMaster B2230

I understand that, but he referenced two different monitors with his original pics......B2030 and B2230. He either has a 20 inch or a 22 inch monitor.

unlikely the exact monitor model is relevant to this problem. video modes are a function of graphics card chipset implementation and driver.
heck..i ran this t260 under vista for 3 years and it listed as 'generic monitor' but all the modes were available.

Actually it is very relevant. His computer thinks it has two different monitors connected,

1 - B2030 which is a 20" monitor with a native resolution of 1600x900

2 - SMB2230 (or likely B2230) which is a 22" monitor with a native resolution of 1920x1080

of which the 1st shouldn't be able to even run at the higher resolution.

leonsegal let's see if we can't at least get Windows to detect the correct monitor. Start with setting Device Manager to show hidden and disconnected/ghost devices,

Device Manager : Hidden Devices

Under monitors right click and delete/remove any that are showing, and also tick the box to remove any software/driver. If there is more than one don't restart until all are removed. Once restarted hopefully that will force Windows to detect and install the monitor correctly. If not then install the monitor driver from Samsung I posted earlier.

It has been reported that Samsung and MS to not play well together, I have a Samsung P2570HD and took a bit to get thing right. I uninstalled the Samsung driver and used the generic PnP monitor driver to get my resolution, well, resolved. Incorrect res setting won't harm a LCD, but could on the old CRTs.

If you have nVIDIA graphics you may need to change/update the driver.
NVIDIA Driver Downloads - Advanced Search Their driver have cause a few issues, try the 270.61.

EDIT: I just checked your specs, you have a very similar GFX card to mine.