This area controls the number of colors used and the display area of the monitor. It is STRONGLY recommended that you do not make adjustments to this area unless you know the specific parameters of both your computer and monitor. It is possible to damage the settings to the computer and monitor if you do not use the correct settings.
The Color Palette section lets you set the number of colors, anwhere from 16 colors to 24 bit (16 million colors), depending on the monitor installed. The Desktop Area section can be set to a certain pixel level. Lesser settings will show fewer items, but the items will be larger on the screen. Settings towards the More side will show a much smaller Desktop area, but more items can then be seen.