Help with TV res on computer

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First of all thank you for reading this post. I have been reading posts for the last few days and can not figure this out

I am having issues watching movies on my tv from my pc. The problem is that when the picture size is set to natural or dot by dot there are black bars all around the desktop and when i set the picture size to full the desktop fits perfect but I believe it is just stretched out and then when the movies are played the bars on the top and bottom of the screen are way to big and leaves only a small strip for the movie.

the tv is a
Toshiba Regza model # 52rv530u

.tacp.toshiba.com/televisions/lcd/product.asp?model=52rv530u


and the computer is a
Sony Vaio PCV-RS310
w/ a Intel(R) 82845G/GL/GE/PE/GV Graphics Controller

esupport.sony.com/US/perl/swu-list.pl?mdl=PCVRS310

I have tried all the resolutions and only 1280 x 1024 w/ a 60hz refresh rate works

Is there a new driver I could download??
Is it the videocard??

If more info is needed let me know. I appreciate any help that can be offered
 
I think the problem is that the computer must be sxga now is there any way to convert that to wsxga or another format or will this require a new video card??
 
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