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Have you ever stopped to wonder exactly why everyone outside your conspiracy theorist buddies in your mother's basement thinks you're a nutjob, and why nobody takes you seriously?
1024x768 should be equivalent to a 4:3 screen ratio, but standard 4:3 videos don't fit the screen either. So I don't think it can really be 1024x768. Or they use pixels that aren't the standard pixel ratio, which is usually 1:1. It is not uncommon for manufacturers to do that. (http://en.wikipedia.org/wiki/Pixel_aspect_ratio)
That's where flash comes in. It works on all browsers the same way, and I can compile an offline desktop app from, pretty much, the same code if the users request it.