Monitor with 2007 macbook

[ingrowingwhale]

Hi, I recently purchased a 19 inch BenQ monitor as a display for my 2007 macbook. The monitor has a max resolution of 1366*768 which ends up displaying pretty naff quality pixely text (since the resolution is essentially the same as my macbook but on a bigger screen) and hurting my eyes regardless of what the contrast or luminosity is. I'm thinking of returning the monitor and forking out a bit more for a higher resolution monitor with a DVI input.

My question is, will the macbook handle 1920x1080 well or is it too much for it?

Thanks