Display- programs do not completely close-out off the display screen

We have Windows 98 and am having issues when closing out
of programs. After clicking on the "X" in the corner,
only the left side of the screen closes. The right side
stays. The same happen with the display background, half
whit half blue.

I hve tried adjusting the pixels and the background but
for some reason it goes back to 16 bit. Microsoft money
tells me to run it needs 256 color to function. But the
display does not keep the settings.

Any suggestion will be appreciated.