Happy Australia Day to you as well Maid.
You went this way because you can't do all maintenance tasks from a Client connected to a server, such as View Maintenance, Cover Art collection, moving files using F6 etc. Let's not rehash all that again.
Some other people do use MC the way you do, and are happy with it. There must just be something about the different resolutions used on your Server vs your Workstation. I don't know how to fix your resolution issue, or indeed your driver issue. I would have to set up the same situation as you have to see if my setup would have the same problem. But I don't have a nVidia card in my Workstation, so I probably could duplicate it. I do have nVidia in my HTPC, but I am running an old driver version, as per my signature, and haven't had the need to update it for a while.
Once you downgrade the driver, if that works, just use that until a newer driver comes out, then test if that one loads properly. If not, revert again. You could try searching the internet for the driver issue, as it doesn't sound like MC problem.
The resolution issue you may have to live with.