Do you have the most current driver installed for the video adapter?
Are there ANY widescreen modes listed on the available resolutions?
Do you have the "Show all resolutions" box checked? (If the display isn't correctly communicating the EDID data, checking this will let you force the correct resolution.)
If you still can't set that resolution you are likely just out-of-luck. Many earlier video cards do not support widescreen resolutions => and if that's the case here there's nothing you can do. I checked ATI's site, but it doesn't show the supported resolutions for a 7000 [A Radeo 7200 DOES support widescreen resolutions, however, so hopefully this is just a driver issue.]