LCDs are different to CRT monitors. The screen is made up of a certain number of pixels which give it a Native Resolution. Normally this is 1280 x 1024 for 17 & 19" panels.
If you reduce this resolution the display will become fuzzy.
You can increase the text size in the display properties menu.
If you think your text is small try running a Sony Laptop at it's native resolution of 1680 x 1200 on a 16.1" screen