Ive never looked for this particular item here but im guessing it becomes available when Sandoria is first ranking so it might explain why you cant find it.
K-7 is the moat, so unless she's floating in it this is wrong.
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Final Fantasy XI 12-14-11 Update wrote:
Adjust the resolution of menus. The main screen resolution for "FINAL FANTASY XI" is dependent on the "Overlay Graphics Resolution" setting. If the Overlay Graphics Resolution is set higher than the Menu Resolution, menus will be automatically resized.