I can confirm this bug affects both of my Toshiba Satellite comptuers on
Gutsy 7.10 Stable. (As an aside, it also affects Kubutnu 7.10 stable as
well)

The first of the Laptops has an ATi X1600 Mobile graphics chip, and the
other has an Intel i915.

I first noticed the glitch when I ran the installer from the live CD.
All of the dialog boxes had window borders that took up 1/3 of the
screen. KDE seems far worse than Gnome. Every piece of text in KDE is
too large, and it is 100% unusable. I found that in Gnome if the extra
graphics settings for the window manager are turned off, then turned
back on again it seems to resolve the problem.

Glad to see that others are experiencing the same glitch.

-- 
Large font in the GDM login text field after installing xserver-xorg-video-intel
https://bugs.launchpad.net/bugs/107320
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