Rule 1 of Vista/Windows 7: Don't install games in the Program Files folder. Windows tries to instill more security in programs run from here. Just move the Everquest folder out to someplace else.
As far as the resolution, Everquest will run at whatever your PC is capable of running at. I have one PC running 1680x1050 in windowed mode on a 1980x1200 24" monitor and I have it running full screen 1400x900 on a laptop with no issues. You may want to think about upgrading your PC graphics card drivers and see if that fixes any issues.
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