Well my native screen resolution is 1920x1080 but since my aging HD 5770 GPU is starting to show some unreasonable FPS in newer games, I wanted to lower the resolution to get better FPS.

But as soon as I lower the ingame resolution the image squeezes down leaving a huge black border around the game image.
I've been looking for the image scaling option in CCC but it's unavailable.

I have 22" LG LCD backlit.  I also use the latest CCC version.  And I did notice that weirdly, CCC identifies my display as being CRT.

Help me please.

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Without more information I do not fully understand what you are getting at but it seems like you want to see an image of where you can set the scaling options to fix the black boarders.

(Windows 7 and Vista) Digital connections only.

AMD Customer Care
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So i have the following:
XFX HD 5770
Core2Quad 2.5ghz
Windows 7 Ultimate 64bit (All important updates installed)
CCC version 2012.0405.2205.37728

In the picture you showed exactly what I need but I don't have the "My Digital Flat Panel" tab in my CCC.  It identifies my monitor as VGA and thus replaces that tab by "My VGA Displays", under which there is no option for upscaling image.
As I said earlier I use an LG LCD widescreen.

I might have found the culprit but am not sure. I don't use the DVI cable from monitor Graphic card.  I use a VGA cable with DVI to VGA adapter in the Graphic card.  My monitor has 2 input ports (DVI-D and D-Sub). The D-sub uses the VGA cable.  Do you think that this is the problem?

You did indeed find the culprit.  You do need to use a DVI cable connection.  If your LCD monitor has a DVI input, I would recommend you switch regardless.  You may also notice a slight improvement in overall display quality.

With the DVI connection, you can then adjust the scaling properties you need.  The screen-capture George@AMD showed is for when you have an HDTV connected over HDMI, and doing 1920x1080, but getting black borders.  The slider lets you "overscan" enlarge the display to correct for the borders.

In your case, you need to set your desktop resolution to something below the native resolution (same aspect ratio), and then enable GPU Scaling under My Digital Flat Panel > Properties.

;Marc

AMD Customer Care

The information presented in this document is for informational purposes only and may contain technical inaccuracies, omissions and typographical errors. Links to third party sites are for convenience only, and no endorsement is implied

You should definitely switch to a DVI cable, but you should also look at your monitor's scaling options.

EDIT: Ooops - Never mind. I thought that becasue control panel reverts to the default setting "Scale image...panel size" and goes greyed out again after changing the desktop back to 16:9 that my old

4:3, and other narrow aspect res games, would still be in wide screen - their not... phew !

btw - sorry for the hijack.