Why is everything HUGE?

I'm got a friend who has a desktop computer with a 22 inch screen, and with the resolution set all the way up at 1680 by 1050 you'd think everything would be little, but they aren't. The icons WERE huge until I went into the appearance settings and set the size down to 32 when it was up to like 60. So they look alright, but the windows that pop up are still giant.

Trying to setup an outlook account is impossible because I can't see the next or "manually configure" buttons, they're hidden unto the edge of the screen, the "X" in the corner of windows is like a half an inch in length and width...

I can't seem to change anything else to normal in the appearance settings... does anyone know a way to set your desktop back to its default appearance?