With some limitations - a bit annoying that the display won't shrink below a certain limit. but there are a couple of things you can do (from my experience with my 800x480 EEEPC 701 :).
#1 - the geometry options on startup (-g <width>x<height>) are limited by the display mode you choose. the default display mode won't go below a limit. To really shrink your display you need to try the "-M pda" option, to change the display mode for PDA. Downside is you have three tabs, one for each major display section. Not so bad in most cases. Slightly irritating also is that selecting PDA mode resets your font and some colour selections. WHY I DO NOT KNOW????
#2 - The car mode (-M car) is only slightly different from the std mode and at least allows you to push some non-critical (for me anyway) information off the screen.
I now run a limited number of map sets (to keep the list short), am running eeebuntu NBR (so have max screen real-estate, no titlebars or window borders etc) and use the following launcher to start it -
gpsdrive -S -q -M car -g 687x454
you may need to experiment with the geometry settings on yours.
Hope this helps.
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