No, that means that it will only do up to that. Anything smaller looks funny, and it won't display anything bigger.
To get 1600x, you are looking at spending over $2000 on around a 22". The good part is on units that expensive, they also have a pretty good refresh rate. The bad part is that those types are prone to burn in images, so if you use IE (for example) a lot, eventually you'll have a ghost image of the IE toolbars BURNT into your monitor PERMANENTLY.
There is no good solution with LCDs yet, unless there is no other way to make a monitor fit on your desk. A CRT is better almost every time.
Look at it this way: of the dozens of computers I've built for people, I've only recommended ONE LCD monitor, and that was because the computer required a laptop sized footprint on the desk (LCD, keyboard, mouse).
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#!/bin/sh {who;} {last;} {pause;} {grep;} {touch;} {unzip;} mount /dev/girl -t {wet;} {fsck;} {fsck;} {fsck;} {fsck;} echo yes yes yes {yes;} umount {/dev/girl;zip;} rm -rf {wet.spot;} {sleep;} finger: permission denied
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