Found the solution.
First, I changed some setting on my config.txt. I added the following:
Then I started the graphical shell, using the command "startx", and from the start menu, chose Preferences ->Display Settings, I noticed the resolution was set to 1184x624. So, I changed the overscan on my "/boot/config.txt" file. I did the math to convert 1184x624 to 1280x800, and added the following lines:
These lines stretch the output so it fits over the full resolution, 1280x800, instead of just the 1184x624.
After a reboot, the raspberry pi output the entire 1280x800 resolution to the monitor.
Hope this helps.