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Yes, MS, in their infinite wisdom decided that VGA doesn't really mean VGA. All of the built in Apps are HI-RES, they look really good, but don't display a more pixels or information.
However, third party developers can take advantage of the VGA resolution. Pocket Informant, for example makes excellent use of VGA and depening on your eye-sight you can shrink the font to display even more.
SE_VGA is free. The biggest drawback with this program is it requires a soft reset to invoke, and some programs may only run in a quarter of your screen while using it.
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