1024x768 definitely isn't the optimal resolution to use with a Widescreen LCD display; it's probably more like 1,366x768 for something in the 32" range. Your laptop's video adapter/drivers may not be able to handle that resolution, although if it did, your display quality would have been markedly better (no need for "stretch" to fill the display horizontally).

The distance from your work area may eliminate any benefit from using it, though.