1) I use a Compaq 7550 monitor, and the default screen resolution is 1024 x 768. However, I do have the option of increasing it to the maximum 1600 x 1200. If I do that, will I damage my monitor?

2) I use a VIA/S3G UniChrome IGP video card, and need to know where I should go to update my older drivers.

As always, any info is greatly appreciated.

Increasing resolution shouldn't damage a monitor. Increasing refresh rate past your monitor's capabilities can though.

As for driver's, if you've already checked S3's website then I can't really help ya except to say search google.....oh and go buy a decent video card. Something for $50 will be alot better than what you have right now.

This is S3's website driver support: http://www.s3graphics.com/en/resources/drivers/ and this is a website that has a number of S3 driver candidates: http://www.savagenews.com/drivers/drivers.php

But, as dosfreak has pointed out, you would do much better simply getting an ATI or nVidia card.