I've had that happen before with widescreens. I think you need to get the resolution of the home machine down low enough to match something the wide screen can do. Of course, that won't make it very workable.
Because the widescreen doesn't support the height of 1024, I would try setting both to 1024 w x 768 h (or whatever resolution the widescreen offers that's 768 high) and see if that works.
Or go to a scalable solution.