intel graphics - Screen resolution stuck at 1024x768

I just updated from Ubuntu 10.10 to 11.04 and have an issue regarding the screen resolution. I have Intel integrated gfx chip and my monitor supports resolutions larger than 1024x768. (in 10.10 I've been using 1280x1024) But as soon as I upgraded, I'm stuck with 1024x768 resolution and seems I can't change it. running

xrandr

In terminal yields the following results,

Screen 0: minimum 320 x 200, current 1024 x 768, maximum 4096 x 4096
LVDS1 connected 1024x768+0+0 (normal left inverted right x axis y axis) 0mm x 0mm
   1280x800       58.1 +
   1024x768       60.0* 
   800x600        60.3     56.2  
   640x480        59.9  
VGA1 connected 1024x768+0+0 (normal left inverted right x axis y axis) 344mm x 194mm
   1366x768       59.9 +
   1360x768       60.0  

   1024x768       75.1     72.0     70.1     60.0* 
   832x624        74.6  
   800x600        72.2     75.0     60.3     56.2  
   640x480        72.8     75.0     66.7     60.0  
   720x400        70.1  
  1280x1024_60.00 (0xce)  109.0MHz
        h: width  1280 start 1368 end 1496 total 1712 skew    0 clock   63.7KHz
        v: height 1024 start 1027 end 1034 total 1063           clock   59.9Hz

What maybe the problem? Is it a bug? What kind of steps I should take in order to get a higher resolution? (changing xorg.conf maybe?) Any insight is highly appreciated. Thanks in advance.

UPDATE

Screenshot after running

xrandr --addmode VGA1 1360x768

As you can see, side bar is not completely visible and Ubuntu logo at the task bar is missing. Also when you open an application, the Task bar of the application (where it should go to the top panel) is missing as well..

I solved the problem by running:

xrandr --addmode VGA1 1366x768

I also added new modes to the change resolution drop down by using,

xrandr --newmode "mode line"

Where mode line replaces the supported resolutions. You can find the supported resolutions by running:

xrandr

Currently, it's working all right.