I was half right and half wrong. I learned that you can set a window size in the application properties and then use the window object to re-size everything to a different reasonable size (640x480, 1280x1024, etc.)
BUT, sometimes the sprites look weird and more importantly when you full-screen a game, it stretches or compresses everything depending on if your working with a wide-screen or standard screen size.
1) Is my solution to the window resizing a good one or will that effect performance or cause other issues?
2) How do I prevent the stretching when entering full-screen
3) every time I try to use change resolution code in the event editor, the game would crash or not run. Is there a fix? Does it have to do with the size of my sprites? Could it be that only works for 3D objects?
Thank you in advance