I recenlty replaced my CRT w/ a HP 2009m FLAT panel monitor on a 4 year old PC. The monitor suggest a ratio of 1600 x 900 but on my setting I can not go that high.
Do I need a new video card or is there a better solution?Yes you will need a video card that will span those dimensions, otherwise you can go with 1024 x768, but dimensions of objects will be crushed and stretched if the display syncs at that.You might not need a new video card...try this first.

from the desktop click START, RIGHT-click MY COMPUTER>properties>hardware tab>device manager

Next to where it says "display adapters" click on the "+" sign. On the submenu, right click and then click "UPDATE" and see if Windows will look on the Internet for an updated driver...

If that doesn't fix the problem then most likely you need a video card that support the higher resolution

edit: I'm not sure if you can get to Device Manager that way in Win2000. If you have a hard time FINDING it, just type: devmgmt.msc into the RUN command