I too am having this issue. I have used a HDMI cable and connected it to my DELL U2711 monitor which has a resolution of 2560x1440.
With a max resolution of 1920x1080 everything looks horrible. I have set games to run via the Nvidia 3D Settings control panel, but it doesn't change the resolution at all, and all games are running @ 1920x1080 res, which looks horrible. And yes I have tried (in game) to change resolution and the max offering available is only 1920x1080 (this is for numerous games)
Is there a way to use the HDMI feature and get a monitor to display more than 1920x1080 max resolution?