VirtualBox resolution problems in a headless environment

In certain cases running a VirtualBox VM in a headless linux environment can lead to a Windows XP having an undesired resolution.

I fixed this using the following two commands:

Global command:
VBoxManage setextradata global GUI/MaxGuestResolution 1920,1200

For a running VM:
VBoxManage controlvm "remote" setvideomodehint 1920 1200 24

I found the resolution in this forum:
VirtualBox Forums