To fix ur first problem is very simple.
Open config.xml and find this at the top...
Code:
<VIDEO>
<WIDTH>1024</WIDTH>
<HEIGHT>768</HEIGHT>
<COLORBITS>16</COLORBITS>
<GAMMA>233</GAMMA>
<FULLSCREEN>TRUE</FULLSCREEN>
<REFLECTION>true</REFLECTION>
<LIGHTMAP>true</LIGHTMAP>
<DYNAMICLIGHT>true</DYNAMICLIGHT>
<SHADER>true</SHADER>
<CHARACTORTEXTURELEVEL>1</CHARACTORTEXTURELEVEL>
<MAPTEXTURELEVEL>1</MAPTEXTURELEVEL>
<EFFECTLEVEL>0</EFFECTLEVEL>
<TEXTUREFORMAT>1</TEXTUREFORMAT>
<NHARDWARETNL>false</NHARDWARETNL>
</VIDEO>
Change 1024x768 to your screen resolution.