While it's correct that you cannot get more than 1024x768 on the laptop's screen, it really has to be mentioned that you can get a much higher resolution if you connect to an external monitor simply using a VGA cable.
E.g. I am on 1920x1080 right now on an X60; To further back this up, check the specs for the GMA950 graphics chipset that X60 comes with http://www.intel.com/products/chipsets/gma950/ and you'll see it can go all the way up to 2048x1536 @75Hz.
Other than the above, if you happen to have a monitor with a non-VGA reception, you can always get a VGA to DVI/HDMI convertor to connect the different cables, however I've noticed that in the case of using a VGA to HDMI conversion box the resolution does not get higher than 1024x768 as it does not recognize the monitor.
Lastly, in my case I had to disable the X60's native monitor output when connecting to an external monitor, as having them both on at the same time made the visual experience quite sluggish, while just having the external monitor on was with no probs at all.