Hmm...i play in 1024x768 windowed or fullscreen and don't have any problem with this..are you sure it's not a sharpness issue with the monitor?
The only thing i can suggest is the line in your baldur.ini file:
FontName=
I haven't the slightest idea whether it would work (and it seems far too simplistic) but you could try putting the name/path of a clearer windows font in there (eg Arial) This might be one to ask the official tech support guys about though...
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