It all started with Alaa mentioning that these lappies having higher resolution on their preinstalled windowz, so why not us..
I first found that it displays 1280x800 on windows while only 1024x768 on Mandrake (Mandriva or wutever), googling enough I found this on ubuntu forums, followed the steps, errr.. not exactly.
I got the 855resolution-0.3.tgz, compiled it and there we go, pretty neat app, seemingly the intel 855 video chipsets have some sort of programmable part in the bios to deal with wide screens.
Anyway I used it to have a mode on the video bios for the 1280x800 screen.
It's all in the fine manual that came with the 855resolution app.
Then I added this line

Modeline "1280x800_60.00" 83.46 1280 1344 1480 1680 800 801 804 828" -hsync -vsync

in the Monitor section in xorg.conf, ran XFdrake and setup the new resolutions.
Now for the cool part, restart X (X not the whole machine) and there we go, a 1280x800 LCD with every single pixel used and with crisp display.
The last thing to do was to change my init.d and rc5.d to reflect the needed change, as we have to pass the resolution parameters to the video bios on every power cycle, otherwise it forgets ;)
Now I got "penguins eating ta3meya" neatly on my lappie.