no need to set it to the native resolution of your monitor modern monitors can display more then the native resolution , just use the one you like most , detect display and chose the one you would prefer the mini usually gives you then a couple to chose what he thinks its best to display on that monitor
then it wont be blurry and the dock will be where it should be
with switchresx you have a wider range of resolutions , but not all of them will be supported by the minis graphic card , it will display any resolution you put in there up to the max res of the mini , but the result may look like what you see now
for example i have second display on my eMac and the eMac itself is set to 1280x960 but the monitor as its a small widescreen 15 inch could maybe display the same resolution, but the eMac ofers me only 1280x800 as max res for that display and this resolution is perfect displayed , i dont want a blurry and unusable display ,like my eMac the mini will detect the display and offer you the resolutions thats best to display
sure you can use switchresx to force any resolution ..but why ? the mini knows what he can display very well
unless of course if you want certain apps in different resolutions , maybe for word docs 1024x768 but for photoshop you would like 1280x960 , then switchresx comes handy as it will automaticly change the res depending on app you open
