SDL 1.3: Fullscreen troubles

Like quite a few people, I’m having problems getting fullscreen toggle to work in 1.3 in Linux.

When I use the SDL_FULLSCREEN flag in SDL_SetVideoMode I do get fullscreen but at much lower resolution. In my app the mouse is not functional now and of course I cannot check keyboard.

And upon exit my whole desktop is messed up. Mouse works. Keyboard does not work. At least not until I go into preferences and try setting display mode. My monitor shows as Unknown now. And even when I set the resolution back to what it should be the fonts are not right.