Are you saying that when you reduce screen resolution from 1280 x 1024 to 800 x 600, you do NOT have the problem of "multiple layers of its self until I stop, and scrolling is like waves rolling up and down the screen"? (this is your earlier post for this problem click here, if anyone needs to know more).
I don't think there's a way to reduce the Display Settings window, as such - but I may be mistaken. 1280 x 1024 appears like the native resolution for your monitor - it's a large-screen monitor, isn't it? 800 x 600 may be too low for it, so try a 1024 x 768 & see how that suits you & the problem.
My monitor is just a 15" one, so a 800 x 600 suits it well, see click here. G