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I've looked up the supported display resolutions for the HD 4650, and 2560x1080 is not among them.
Custom resolutions require custom timings, and if I recall correctly custom resolutions are not supported on the drivers for legacy AMD hardware.
Thank you very much for your time. I suspected it was something like that, but the strange part is that i am able to choose 2560x1080 resolution, and that resolution applies, but I still have black borders and image looks like it is still 16:9 aspect ratio but with 2560x1080 resolution(very vierd). I think that aspect ratio is the problem, so I hope that I can somehow change that to 21:9, but fwith no success for now. :/