You probably already know the following, but thought I'd mention it just in case.
One of the most aggravating things about Windows is features that should be turned on by default rather than having to be discovered many layers deep. Foremost is ClearType, which takes out most of the jaggies seen in most type on screen.
Hopefully you've already discovered and activated ClearType. I was reminded of it again when restoring my files from my crashed hard drive. Even though I had activated ClearType before, I had to start with my old copy of Windows and do it all over again.
Following is first the advice link, then the advice itself from the site. Take a minute to be sure your computer is using ClearType. It's well worth your while.
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http://windows.about.com/od/tipsarchive/l/bltip586.htm Windows XP Tip of the Day
Tip #586: Change Text to ClearType
Windows XP can employ a technology called ClearType to smooth the appearance of text on the screen. To switch to this method of rendering text, simply right-click an open area of the Desktop and choose Properties. In the Display Properties window that appears, click the Appearance tab, then click the Effects button.
Choose ClearType from the drop-down box under "Use the following method to smooth edges of screen fonts." Click OK and OK to see how it looks.
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Amazing isn't it how much sleuthing required to add something that is so important and basic.
Enjoy.