I wanted to take a minute and just post the items that seemed to work for me. (after multiple reboots and switching KVM back and forth)
I did (2) things and am not 100% sure which one fixed it (and don't want to mess with it now that it works)
First I did this:
regedit32-
HKLM\SOFTWARE\MICROSOFT\WINDOWS\CURRENTVERSION\CONTROLPANEL\SETTINGS\VIDEO\
Basically i did a search for 1600x1200 which was the unwanted res that it kept changing to. Found it listed under DISPLAY1\monitor (really long value)
I changed that key name to 1920x1080x60Hz
Then I also re-downloaded the very latest ATI CCC & drivers for my RadeonHD card. In the ATI controlPanel, i went under "desktops & displays" then clicked on my display and then 'configure'. Under monitor attributes, i UNCHECKED the setting "Use Extended Display Identification Data (EDID) or driver defaults". I then manually selected the resolution I wanted as 1920x1080 @ 60Hz.
So far so good...