The resolution loss can occur with Power Macintosh 6100, 7100, or 8100 computers that have an AppleVision 1710 or 1710AV display connected to the AV Display Connector. All resolutions above 640 x 480 are no longer selectable. The display is still recognized as an AppleVision display, and all of the other AppleVision features still function (color calibration, geometry settings, and so on).
Apple Display software addresses this issue. It can be downloaded from Apple Software Updates sites. (Apple Display software supercedes and replaces AppleVision software as of version 1.5.3 of AppleVision software.)
These articles can help you locate the software update mentioned here:
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Where to Find Apple Software Updates" - Lists online services for free Apple software updates.
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Obtaining Apple Product Support in the USA" - Lists 800 numbers and online services for software updates, Apple support information, and a subset of the Apple Tech Info Library.