Bug: design resolution setting ignored

Over in this thread: http://www.garagegames.com/mg/forums/result.thread.php?qt=64013

...I've been told that changing the design resolution is supposed to change the size of the game window. Yet that's not happening. Whether I set the the resolution to 640*480 or 10,000*7,500, I still get the same 800*600 window when I run my game.

This is under 1.5 version 3. Here's a copy of the console log from my last attempt (design resolution settings were 1024*768, which is my desired game window size):

//-------------------------- 7/2/2007 -- 14:33:02 -----
Processor Init:
   AMD (unknown), ~2.00 Ghz
   FPU detected
   MMX detected
   3DNow detected
   SSE detected
 
Math Init:
   Installing Standard C extensions
   Installing Assembly extensions
   Installing FPU extensions
   Installing MMX extensions
   Installing 3DNow extensions
   Installing SSE extensions
 
Input Init:
   DirectInput enabled.

Initializing chunk mappings...
   o 'TEXT' maps to TextChunk
   o 'SCHK' maps to UnknownChunk
   o 'SCHK' maps to SimChunk
Reading Display Device information...
   Primary Display Device Found:
      Vendor Id: VEN_0000
      Device Id: DEV_0000

Using OpenGL rendering. Fullscreen: 0

Binding server port to default IP
UDP initialized on port 0
Video Init:
   Accelerated OpenGL display device detected.
   Accelerated D3D device detected.
   Voodoo 2 display device not detected.

Activating the OpenGL display device...
Activating the OpenGL display device...
Setting screen mode to 1239x864x32 (w)...
Creating a new window...
Acquiring a new device context...
Pixel format set:
  32 color bits, 24 depth bits, 8 stencil bits
Creating a new rendering context...
Making the new rendering context current...
OpenGL driver information:
  Vendor: ATI Technologies Inc.
  Renderer: Radeon X1600 Series x86/MMX/3DNow!/SSE2
  Version: 2.0.6232 WinXP Release
OpenGL Init: Enabled Extensions
  ARB_multitexture (Max Texture Units: 8)
  EXT_blend_color
  EXT_blend_minmax
  EXT_compiled_vertex_array
  EXT_texture_env_combine
  EXT_packed_pixels
  EXT_fog_coord
  ARB_texture_compression
  EXT_texture_compression_s3tc
  (ARB|EXT)_texture_env_add
  EXT_texture_filter_anisotropic (Max anisotropy: 16)
  WGL_EXT_swap_control
OpenGL Init: Disabled Extensions
  EXT_paletted_texture
  NV_vertex_array_range
  3DFX_texture_compression_FXT1

Max Texture Size reported as: 4096
OpenAL Driver Init:
   Vendor: Creative Labs Inc.
   Version: OpenAL 1.0
   Renderer: Software
   Extensions: EAX 2.0, EAX 3.0, EAX Unified, and EAX-AC3

 % - Initialized Common
 % - Initializing Tools
 % - Initializing Tools Base
 % - Initializing Debugger
 % - Initializing Gui Builder
 % - Initializing Particle Effect Builder
 % - Initializing Level Editor
Internet Proxy: (null)
 % - Initializing TileMap Builder
 % - Initializing ImageMap Builder
 % - Initializing T2D Behavior Editor

Torque Game Builder (v1.5 Beta 3) initialized...
% Opening Project C:/Documents and Settings/Sherry McNeese/My Documents/MyGames/MyGame/project.t2dproj ...
Exporting Particle Editor preferences.
Exporting Level Editor preferences.
Exporting Image Editor preferences.
Exporting Gui preferences.
Exporting TGB preferences.
Shutting down the OpenGL display device...
Making the GL rendering context not current...
Deleting the GL rendering context...
Releasing the device context...