Yes, it does seem to be more of a problem in 1024 than other resolutions. I tried 1152 and that seemed better, then I tried 1280x960, and that was fine, as it should be. Seems to be a bug at 1024 though. The problem seems to be that the hud font they've chosen for 1.1 doesn't scale well enough to the number of available pixels at 1024.