I just got a new laptop and am running it at 1600x1200. With IE I was getting jagged images, so I pinged the internal IE discussions group and got this response from Tony Schriener.
It sounds like the “UseHR” registry key is set and the system is set to use high DPI. See the bottom of http://msdn.microsoft.com/library/default.asp?url=/workshop/author/dhtml/overview/highdpi.asp.
IE scales fonts just fine based on DPI without that key so I recommend setting it to 0 (or deleting the value).
It works. Thanks Tony!
I hope this helps someone else as well.