The reason its more blurry and less sharp when running non-native resolutions, is that LCD's and Plasma screens are "fixed pixel displays". That means they always have the same number pixels. So, if you buy a laptop with 1600 x 900 resolution and display a 1280 x 720 image full screen, it will use 1600 x 900 pixels to display that image, resulting in a less sharp image.
But, you can always run it 1:1, meaning you get a 1280 x 720 image and the screen will use only 1280 x 720 pixels to display that image (the rest of the pixels will be shown as black, giving you black bars around the image). Then it will be as sharp as it can be, but not full screen though.
Often, the game looks well enough in "scale to aspect" mode to be a compromise, where the game will be stretched until it fills the height of the screen, leaving only black bars on the side and it keeps the aspect ratio avoiding stretch.
Games usually pulls the resolutions available from what is available in windows. Many of our solutions gives you an option to manually force a resolution as well, if its not supported by the game.
Rise of nations is one of those games. There you can edit the rise2.ini file to desired resolution (with a lower limit of 1024x768). The solutions can be found under games in the top menu here. For the Rise of nations example, here's that one:
http://widescreengamingforum.com/dr/rise-nations
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