The difference (XGA, UXGA, etc.) is just the physical screen resolution. Unlike with CRTs, LCDs have a fixed number of pixels (for example 1024x768) and must "fake" lower resolutions by scaling up the smaller picture.
Scaling up can look pretty lousy since going 800x600 -> 1024x768 means every 1 pixel must be upscaled to 1.28 pixels, usually with some kind of antialising (forming the extra pixel by looking at the pixels around it).
Also note that a specific LCD screen size like 14.1" can have different resolutions from different manufacturers, so one might be 1024x768 and another 1280x1024. But both are still locked to that specifc resolution.