i have a 7" lilliput also, and my 800x600 just hit the dirt also :(
i think ill run the 640 resolution and just scale down road runner, that way everything is still easy to read in windows.
I read in another thread that someone had a bent pin going into their lilliput which caused this problem, that might be another point to check.
i hope this problem is solved soon, what a pain in the ***. :-/