You can manually set the resolution by editing the graphicsettings.lsx file in Wordpad, or other text editor, located in the folder:
C:/Users/ %username% /My Documents/Larian Studios/Dragon Commander
Look for the section
<node id="ConfigEntry">
<attribute id="MapKey" value="ScreenHeight" type="22" />
<attribute id="Type" value="0" type="5" />
<attribute id="Value" value="768" type="4" />
</node>
<node id="ConfigEntry">
<attribute id="MapKey" value="ScreenWidth" type="22" />
<attribute id="Type" value="0" type="5" />
<attribute id="Value" value="1024" type="4" />
</node>
Search for 'fake' near the start of the file to set the display mode (if both FakeFullscreen and Fullscreen are set to zero, it will be in Window mode).
<node id="ConfigEntry">
<attribute id="MapKey" value="FakeFullscreenEnabled" type="22" />
<attribute id="Type" value="0" type="5" />
<attribute id="Value" value="0" type="4" />
</node>
<node id="ConfigEntry">
<attribute id="MapKey" value="FrameCapFPS" type="22" />
<attribute id="Type" value="0" type="5" />
<attribute id="Value" value="60" type="4" />
</node>
<node id="ConfigEntry">
<attribute id="MapKey" value="Fullscreen" type="22" />
<attribute id="Type" value="0" type="5" />
<attribute id="Value" value="1" type="4" />
</node>