I'm seeing a similar problem using normal fonts (96 dpi), but with an appearance scheme that opts for 11 pt fonts instead of the standard 8 pt fonts. So, the problem appears to be with the absolute font size, not the resolution (you probably knew that, but I thought I'd be clear). Here's a screen shot:
http://www.clotho.com/staff/chris/installer.png
I see the same problem with my own installer built with v1.9.
That computer is running Windows 2000 with all updates applied (Service Pack 4). It's a ThinkPad A21p running at 1600x1200 with 32bit depth with the "IBM ThinkPad SXGA+" appearance scheme, which uses 11pt Tahoma everywhere. I have NOT seen similar problems my other Windows 2000 machine (Dell Dimension 4100, running at 1280x1024, 32 bit with the "Windows Standard" scheme), neither have I seen this issue on the two Windows XP machines that I've tested.
I'd MUCH rather have the dialog.jpg and banner.jpg scaled up and looking aliased than have it look buggy like the screenshot above. Is it feasible to query the window size and scale the image to that? Or, failing that, can we force the font in Advanced Installer? I hate to do that, since it violates the user's preferences, but the current incarnation just looks broken.
This is an important problem for me, and I'm a paid and registered user.
Chris Dolan