I have been seeing this in a Java application that wasn't present earlier.
I had done something with the smooth fonts utility provided by Windows XP, which could be the source of the problem. So I have tried uninstalling the smooth fonts utility from Power Toys. But I ca'nt remember exactly after which event the fonts started getting garbled in Java applications
I have again seen it today in a Flash applications, for which I have captured the screenshot below. One thing I notice is that the fonts are garbled when on dark backgrounds, while in the Java application, the fonts are clear when on white backgrounds, but when selected become garbled because the background changes to black.
What is the source of this problem and how do I fix it?