From Michelle Castle,
Your Guide to Focus on Windows.
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By changing the screen resolution, you can increase the size or amount of information that can be displayed on the screen at once, but increasing the size decreases the amount of information on the screen and vice versa. In the screen shots above, you can see the effect changing the screen resolution has on the size and amount of information that can be displayed. Here's how it works:

• Higher resolution = more information on the screen, but each item is smaller
• Lower resolution = bigger items, but less information on the screen

Since increasing the screen resolution allows you to display more information on the screen at once, it can be a good option when you have more than program open or when you're browsing the Internet.

On the other hand, decreasing the size of items on the screen can be a good option for people who are visually impaired. It can also be useful if you struggle to click on small icons or other elements and want them to appear larger on the screen.

To change screen resolution in XP, follow these steps.