Games running in lower resolution than the desktop resolution doesn't fill the screen

I have an HP ENVY TS 17 Notebook with NVIDIA GT 740M and Intel 4600HD Graphics Drivers, and running Windows 7. Whenever I want to change the resolution in games to a lower resolution than the desktop resolution, the game shrinks its view leaving couple of inches black bars on the edges. For example if my desktop resolution is 1920x1080, and I want to run a game in 1600x900, the game doesn't fill the screen, instead, it leaves some amount of blank space on the edges of the screen.

In order to solve this problem, I tried the following steps:

First I tried to locate the Display tab in NVIDIA Control panel in order to set scaling/stretching to 'Full Screen', but my version of NVIDIA CP doesn't have the Display Tab (My NVIDIA drivers are the latest version).

Then I found out that I should do this from the Intel HD Graphics Control Panel. My Intel HD Graphics CP has an option named "Scaling" under Display > Display Settings, and it only shows the option Maintain Display Scaling which is checked by default and doesn't allow changing it. Also, after searching through internet I saw that some people suggested entering the 'Advanced Settings' and trying to make changes there. When I try to enter Advanced Settings under Display, it says "This display does not support any of the advanced settings".

After trying these without success, I tried updating the Intel's driver through their website hoping this can fix the problem. I ran Intel's small application on their website which identifies my chipset and suggests me the latest driver for that chipset. The website told me that the driver that is installed on my computer is 10.18.10.3304, and there is an update for this which is 15.33.18.64.3496 (or 10.18.10.3496). So I downloaded the file, but when I tried running it, it gave me this error message: "The drivre being installed is not validated for this computer. Please obtain the appropriate driver from the computer manufacturer. Setup will now exit." which doesn't make any sense.

After trying the above steps, I am not able to fix the problem, and I need help from someone who really knows how to fix this.

Thanks.