PocketMatrix

I don't believe the closed resolution is 320 x 320.

"while the case is closed the visible screen includes a 320 x 320 pixel program area plus an ever-present task bar."
http://www.infosyncworld.com/reviews/n/4129,2.html

Sounds like that's the area that would normally have that blue task bar.

Yes the space is actually there, it's just a pain to use the extra space in a real game. You have to fill that space with *something* that looks good, and only on some screens.

Probably the best solution is to ensure that all your game screens can be extended the extra pixels, and do so accordingly. Alternativley, it seems not uncommon to just ignore the extra space.