When I got my 26" monitor I had the same problem BG. I was actually getting headaches after about 30 mins of use. But I did something that fixed it. I did not reduce my screen resolution at all. I still run it at the recommened 1920x1200. I can't remember exactly, but here are my other settings in Win7:
Right-Click on Desktop, select 'Personalize', and in the bottom/left of the window, click on 'Display Settings'. Mine is set to: 'Smaller - 100%', but you can increase this setting.
On the Top/Left of this screen click on Adjust Clear Type Text. I have that checked. Click 'Next' and follow the wizard to set this up.
That's all I can find right now..