what you're most likely describing is an unfortunate 'feature' of lcds. a brief description is at
http://en.wikipedia.org/wiki/Native_resolution
since 1280x1024 isn't a 4:3 resolution like 1600x1200, you may find things better at 1024x768 if you can tolerate the lack of space.
as an alternative to lowering your resolution you could try adjusting the font size under your display properties (appearance). if you increase the general dpi under advanced properties it can screw with various poker clients, so that would probably be out as a suggestion. various apps have specific font settings you could apply as well.