Hi, I recently had this problem stem up on my desktop, also running 12.10, and managed to fix it after searching extensively on google. I cannot find that solution now, and I realize the problem also exists on my laptop. It is only YouTube videos from what I can tell, where the highest resolution option is 480p, while my laptop screen has a full 1080p display which I would like to take advantage of when watching videos. The only thing I know about the fix is that it was a terminal command, all local, I did not have to download anything. The system resolution is fine, and VLC media player can play all of my 1080p video files fine as well. Also, this is a cross browser problem. The same exact thing happens in Firefox and Google Chrome. Any suggestions would much appreciated. Thanks