I have a Dell Inspiron Laptop 1525 which had Vista Home Premium installed, which I didn't like, and so I have now installed Windows 7 Home Premium, which I much prefer.
Unfortunately the highest resolution I am able to get is 1280 X 800. Pre upgrade I managed 1280 X 1024 which meant I had much smaller icons - which I prefer. The Dell Drivers and Utilities Disk is only geared towards XP and Vista Operating Systems, so is not much use.
The best resolution to use is the native resolution of the screen. Anything other than that and the image will be soft and slightly blurry, but you have to have a graphics driver that enables you to do that.
I am sure you will find W7 just like Vista allows the DPI setting to be adjusted so you can alter the size of text on screen without having to alter resolution... it keeps it all pin sharp.