My issue has been resolved.
Step by step here is what I did:
1) Open Ati Catalyst.
2) From the graphics drop down select Desktops & Display.
3) At the bottom where you see a small monitor icon, click the little triangle at the top right corner. Click on configure in this menu.
4) You should now...
ati catalyst
black bars
blurry text
desktop settings
display issues
drivers
dvi
full screen
graphics
hannspree
monitor
native resolution
radeon
resolution
scaling
screen adjustment
troubleshooting
video issues
visual settings
windows 7
