Question : Problem: Dual 20 inch widescreen on XP (Nvidia)

I am trying to hook up two Princeton 20 inch widescreen monitors to my EVGA 7600GT. I got them working after an hour of fiddling around but my first monitor on VGA connection supports 1600x1050 resolution but the second monitor on DVI does not go beyond 1280x1024. I downloaded the latest nvidia drivers and did run the multiple display wizard which kept asking me for the HDTV resolution and the options were 480i, 480p, ..... 1080p. I don't know what I did wrong.

Answer : Problem: Dual 20 inch widescreen on XP (Nvidia)

"but the second monitor on DVI does not go beyond 1280x1024."

That is a driver limitation.  Try downloading new drivers for the video card from the manufacturers website.  If you cannot find anything newer, you will probably be stuck with that screen size for DVI.