I have an Nvidia card and the right driver makes all of the difference in the
world. With the wrong driver 3D will not work even if the card supports it. The
resolution can be low for the same reason. I suggest that you play around with
the drivers. You may be using an old driver or there may be a better one in the
repositories. Not having the same card, I can't make a suggestion. You are also
running 7.04. Have you thought about upgrading at least the kernel, if not the
whole operating system to a newer version? Hardware detection begins with the
kernel. I have also found that restricted proprietary drivers give better
performance than the open source ones.

You could also try to get one from Nvidia at;
www.nvidia.com/Download/index.aspx?lang=en-us