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I have VB installed on Sabayon 4.2 with windows XP home as my guest. before I install guest additions I could get a resolution of 1024X768 after I install i386guestadditions all I get is 800X600

I installed guest additions in administrator safe mode as I was told to do in the webinar prior to installing VB

can anyone tell me what I have done wrong or what I need to do to resolve the problem.

My computer is a Dell inspiron 5100 with 1280 ram and a 32mb ATI Radion discrete graphics card.

Look at the machine tab (on the guest) and make sure that auto-resize is activated. It turns blue when activated.
Then you use the mouse click and drag to set the size of the VM window or use the (host+f) for full screen. This is a toggle so you use it to go back to normal view.