I have done certain chages in the settings that fixed my problem to some extent.
run the desk.cpl command, go to settings -> Advanced
change the DPI settings from Normal Size (96 DPI) to Large Size (120DPI).
Then go to Appearence tab then to effects...
Check in the box (use the following method to smooth edges of screen fonts) and use the clear type insted of standard.
This should to fix the smaller size to a gud extent but still the size of the text of menus and other controls on IE or any applicaitons is smaller in size.
oops sorry to add, you will need to restart after the DPI setting changes.