I have the same problem since some days. It happened after I tried to install some new fonts with a font management software (extensis suitcase 11) in win xp sp2. suddenly all system fonts seemed to be deactivated (all text on the user interface was just gibberish), but when i opened the windows/fonts/ directory, everything was fine there. As suddenly as the problem appeared, it went away after a reeboot, but what persists is that certain dialogues or pop-ups now use this exaggerated font-size (see my screenshot or the screenshot above).
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