Sorry, it's just that we find newbies silly =)
Well, ok, i'll draw you a picture...
Normal ff7 screen size:
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New screen size with this mod:
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Now, your monitor stays the same size. So what this means is that more visual data is being packed into a smaller space, which adds more detail.
In ff7s default resolution, you can only see 640 pixels across the screen. On a large enough monitor, you can actually squint and count them across. Of course backgrounds are pre-rendered, so you don't see much difference there. However, the 3d models end up going from this:
to this:
I edited the second pic to make my point. basically, in smaller resolutions, each pixel is bigger, and eats up on fine detail.
Like i said, chek your browser settings: There may be an option turned on whcih changes image sizes to fit your screen, in which case you won't see much of a difference.