Your image reveals you’re stuck at 640×480 or something like that.
What TiBook model is this, and what OS 9.2.2 disc/image did you use?
Check if there’s a non-existing phantom monitor that it’s mirroring to in the “Arrange” tab — the “Color LCD (1)” name suggests that is the case. If so, disable mirroring.
If that doesn’t work, try the proper OS 9.2.2 restore disc for your TiBook model or installing the latest ATI drivers for OS 9.