Hi,
I wasn't aware MCNLive have a later release other than 2007.1. The only other distro similar is Mandriva Flash
and I dont want to pay for it when the one I have works OK. Regarding your questions.......
Yes I am running KDE and no, KRandRTray will not allow to change it any higher than 10x7.
Harddrake tells me that I'm already using the 12x8 res but in reality I'm not.
Heres some screenshots.