What size monitor do you have? I have tested out 1.25 just for fun when I was messing with my UI and it's overwhelmingly huge. I'm at somewhere between 0.80-0.85.
Do you mean your font looks like this? (at 7)
Perhaps you need a bigger screen. Our receptionist at work got a 24 ince screen because of her cataracs. Can you post a screenshot?
I wouldn't be too surprised if it is a monitor size/resolution problem. I'd venture to guess that the developers are on dual 24"*, so it would be easy to neglect how the font would affect someone with a smaller monitor.
*Seems like the de facto development standard. The last three places I've worked have had the same setup.