Well, I'm not there in person looking at the monitor, but I agree it could be a driver problem. However, I have noticed many times when I have watched my parents (non-widescreen) T.V. for a few days in a row, and then went back to my LCD HDTV that the picture always looked exactly like you described,
It is stretched side to side and squatted down
I believe that is the look of "widescreen". But again, I'm not actually there looking at your monitor. In my experience, you will get used to it. Another thing to try is demand a new one because you are not happy with the picture, and see if the new one does the same thing.
I set my screen resolution to 1680 x 1050 and that solved the scrunched icons and text.
The higher you set the screen resolution the smaller everything is going to look. However, (and this may only work on XP and up, not sure) Try Right Clicking anywhere on your desktop
> Select Properties
> Click on the Appearance Tab
> In the Bar for Font Size
, select Extra Large Fonts
, (or large Fonts). Then, in that same window, Click on the Effects Button
, and make sure Large Icons
has a check mark next to it. Be sure to click on apply
, and then OK. Again, you may not have these options in 2000, I'm not sure. Hope that helps!