I use the oh-so-evil 1280x1024. There are like no wallpapers in 1024x768 that have a 1280x1024 copy.. It's uncompatible, so to speak. But i like it , it's better than 1024x768 when it comes to browsing the net and such.
1280x1024... As a developper I think it's the best resolution because it gives alot of space to work. I often have 4-5 soft open at the same time and I have to switch between them or put them one on top of the other to compare something... I use Photoshop, Visual Studio .NET, DreamWeaver, WebExpert, 3dsMax and alot of Internet Explorer Windows
i use 1600x1200 for pretty much the same reason as the guy above me, more work space. took a while to get used to everything being so tiny but i'll never go back to anything else now.