Do I have a graphics setting wrong, I can barely read the text on my inventory and skills description. There's not enough space between letters and I can hardly read them. It might just be the way the game actually looks, but I hope not.

I can post a screenie after work if needed. I upped the graphics settings to 'high' from the default of 'low'.

It's probably because you have chosen a resolution that doesn't fit the aspect ratio of your screen. Just try out the different settings until you are happy with one. Usually you'd choose the max resolution of your screen.

The changes you did (switching from "low" to "high") refer to the graphics quality. E.g. texture quality, shadows quality, extra effects. Those you can manually change when you click the "advanced" (or something like that) button next to where you changed the overall graphics quality. This is especially important should you face performance problems when playing.