Change the DPI setting of text:
Right click on the Desktop > Properties > Advanced.
Under the General tab, change the DPI setting from 96 DPI to Large Size (120 DPI) and hit apply. Click 'yes' when it asks you if you would like to use the existing files on your hard drive.
Now when you hit OK to close Display Properties your font size will be bigger and icons will grow in size as well. This should make things look better; you could always input a larger number than 120DPI if this is insufficient.
Now, to increase/decrease text size while browsing the web (Internet Explorer/Firefox/etc) hold the Control button and scroll the mouse wheel up (for larger text) or down (for smaller text). You can blow up or shrink text on pretty much any web page on the fly this way; I use it on my 17" LCD.