I have a really old Compaq 140 14" monitor which can *barely* do 1024x768, but only at very low refresh rates.
*Most* 14" monitors can do 1024x768, but only if you have the right monitor definition in Windows. Try updating the drivers.
If all else fails, try setting the refresh rate to 1024x768x56hz... yeah it'll be flickery, but if it lets you play the game, that's good right?
Regards,
Kiy.