I think it would be possible to upgrade the screen to 1024x768,
Really you just need to find a screen of such resolution thats compatible with the interface!

(I.e. has the same connections to the mainboard.) Also it would have to be the same size!

I am buying a Clamshell Blue 366 with Firewire at the moment, and I really really want to find some way of upgrading the screen!