I'm running one... the text doesn't look as nice, but it does pretty good while playing games and stuff... I've currently able to play all my stuff at native and I just turn down the eye candy a bit and it pretty much evens out.
It uses the same area for displaying the other resolutions. I'm not sure on this, but I think nidia might have an option on there drivers to make it not fill up the whole screen, but I'm using ATI so I don't know.