Well, I don't use 1280x1024 because my monitor only has a max 60Hz refresh rate at that resolution. I'm my experience however, 1280x960 looks stretched disproportionately. The only games that I recall trying that resolution with were the original GLQuake and I think the original Unreal. Personally, I would rather use 1152x870 or 1024x768.
Windows 7 Ultimate|Intel i7 2700K|Gigabyte Z68XP-3DP|16GB GeIL Enhance CORSA|EVGA Geforce GTX 560Ti|OCZ Vertex2 120GB