You choose the resolution using the Ubuntu Displays application. However, you will also need to edit the xorg.conf file to make sure the options you want are available in Parallels:
/etc/X11/xorg.conf
Scroll down until you see a line that looks like:
Modes "1024x768" "800x600" "640x480"
If you wanted to use 1280x800, then add that to the available modes:
Modes "1280x800" "1024x768" "800x600" "640x480"
Last edited: Apr 29, 2012