The Main Menu should look like thishttp://i187.photobucket.com/albums/x241/spixh/Main_Menu.jpg
So it sounds like the bottom part of the picture, which has the Start, Options, Profiles, and Exit buttons, is being cut off instead of being stretched. The game plays in 800x600 resolution, while your monitor is a widescreen.
The only manual I can find for an Asus VH197 monitor is a useless "quick start guide" with microscopic print. I can't tell whether your monitor has the capability to display in 800x600, or if it has any type of stretching or sizing ability.
The game does have a control to let you play in "Full Screen Mode" or not. The control looks like thishttp://i187.photobucket.com/albums/x241/spixh/Options_Menu.jpg
But if you can't see the controls because the button to access them is off the bottom of the screen, you can't access them.
There does seem to be a way to change what they're calling "Full Screen" (which on your monitor cuts off the bottom of the picture) to the game playing in a window, but it involves editing a game file.
First you need to locate where the game is installed. You can do that by right-clicking the shortcut that starts the game and choosing Properties. The Shortcut Tab should show where the game folder is.
Start Notepad. In Win7, you can just type Notepad in the Start Search to find it. In Notepad, click File in the toolbar, then Open, then browse to the Princess.ini folder that's inside the game folder. Notepad will display something like this:
What you need to do is change
and save the changes.
Once you've done this, the game should run in Windowed mode and you should be able to see the whole screen.
I'm not sure if Windows 7 will require you to run Notepad in Administrative mode to make changes. It might depend on where your game is installed.