I have a 22 inch monitor and it does not look funky to me at all. You probably have the wrong resolution or you do not have a graphics card installed; thus leading to the "funky" look.
Or your monitor could be busted. I think that windows 7 is designed to hold up with even larger screens, bordering lcd sized screens.
I have tried plugging it to a 40 inch led tv through hdmi and it could have not been any clearer.