Were normally stuck with the graphic drivers Apple gives us, but the new Minis have Intel Graphics only...
Video Card: HD Graphics 4000 VRAM Type: Integrated Details: This model has an Intel HD Graphics 4000 graphics processor that shares memory with the system. Standard VRAM: 512 MB* Maximum VRAM: 768 MB* Display Support: Dual Displays Resolution Support: 1920x1200* 2nd Display Support: Dual/Mirroring* 2nd Max. Resolution: 2560x1600* Details: *This model simultaneously supports 1920x1200 on an HDMI or a DVI display (using the included HDMI-to-DVI adapter) and 2560x1600 on a Thunderbolt or Mini DisplayPort display or even a VGA display (with an optional Mini DisplayPort-to-VGA adapter, which is compatible with the Thunderbolt port).
No idea why you only get a low rez, could it be the cable?
Thanks much for hinting about cable. I used to use same cable for my other OS installations. But I realized that I have bought the new DisplayPort to VGA adaptor (Apple product). The connecting through another cable to monitor.
I now changed to HDMI to DVI cable and the resolution is perfect 1600x1200.
18. What is the maximum resolution available for use with the Apple Mini DisplayPort to VGA adapter?
The resolution available with the Apple Mini DisplayPort to VGA Adapter is 1920 x 1200. VGA displays that use higher refresh rates (such as 85 Hz) at resolutions of 1600 x 1200 or greater may not generate video properly until you lower the refresh rate.