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Probably because of the DPI settings for your screen/desktop.

Win7 defaulted to large DPI for me because of the pixel size and when I opened IE8 it was at 125%, too. After changing the DPI setting of the desktop it was 100%.

Of course I don't use IE regularly.

That's it, exactly. Makes me wonder they didn't notice.

The screenshot also shows a larger font size than usual on 100 % size (which was 96 dpi, iirc).