First release is up. I plan to finish the application within a few days.
I also have a better (in my opinion) interface in my mind also:

Application Name	VisualPerimeter
Version	-
Short Description	VisualPerimeter allows you to develop programs for smaller display resolutions without the need to change your actual display resolution back and forth...
System Requirements	.NET 4 (Download from here)

Description
Inspired by the N.A.N.Y. idea posted by kyrathaba.
Here's what it basically does: it displays a frame with a customizable inner width and height. You could use this develop a program for a small resolution display (like 1024x768) on a modern high-res, HD-Ready display.

Features

• Custom inner width and height [©]
• Custom outer border thickness [©]
• Custom border color (solid color/gradient) [©]
• Maximum inner width and height determined by the resolution of current screen [©]
• Multi-monitor support [©]
• Hotspot around the border for moving the frame (optional) [©]
• Suggestions are welcome...

℗: Planned | ©: Completed

Limitations
The application was tested on a Windows 7 Enterprise machine, and on a Windows XP SP3 virtual machine.

• no icon (yet)
• no close/minimize button (quit with the taskbar button)
• settings are not saved

Download (Changelog)
VisualPerimeter v0.9.0.0: first release

Installation
Just run the VisualPerimeter_*.exe executable. It will generate the default settings file automatically (coming soon!). If a valid configuration file is present in the same directory the application will load the settings from that (!).

Uninstallation
Delete the executable and the configuration file.

First public version released (v0.2).
As of now exporting and importing urls are not working.