I'm using a Lenovo W530 with (soon to be upgraded) 12.10. Whenever I plug-in an external moitor screen resolution discovery is accurate and I can use dual screen mode happily.
However the situation is different when plug-in a external projector. Using a modern projector with the supplied display cable, detection works well, however with older projectors or when there is a (long) cable extension between laptop and projector (as it is common in conference rooms and hotels), resolution discovery fails and the only option is 640x480.
This bug has been reported.
How can I improve the resolution discovery (or change the resolution manually)?
The Lenovo W530 (and probably a series of other laptops) have both a VGA and a (Mini)DisplayPort video exit. When using the Mini DisplayPort with a VGA adapter, the discovery of the projector's resolution works (mostly) reliably.
While this is another cable to carry around, it solves the embarrassment of not being able to project.