Icons are changed- but not until after much "playing around". On my screen the <OK> button does not appear as it does in your example. I was able to "scrunch" things up in the left lower corner until it did finally appear in that corner-- but does not appear in the bottom of the page where it should. Widgets are still locked- so that is not the problem-- but it still appears I might be in the lower resolution.
PCC does show the higher resolution-- but that resolution doesn't appear as one of the options in the <Configure Your Desktop> for some reason [only choices there are 640x480 and 720x400].
As a side note, I wondered if the on-monitor buttons [degauss, menu, select, etc.] might adjust the height so that I could see the <OK> button on the monitor screen of PCC. The menu informed me that the resolution was 640x480 and it should be changed to 1024x768. Have tried that- hoping to see the full height of the screen, but without the proper resolution I am not able to see the <Apply> or <OK> buttons of the PCC screen