I'm sorry if this has already been answered but as you can see I wasn't even able to come up with a title that made any semblance of sense.

http://i.imgur.com/mq4W3.png

Does anyone know of a way to fix that?

Just looks like the font size is too big to be honest. Try with a smaller size and see how that works.

IIRC, this game has issues with changing the font size after having started a save though, so you can try to start a new one with your current mod settings and see how that looks.

The dizzying array of text-size issues is one of the main reasons I play PST in 800x600 with the original text size. Not only do the larger text sizes cause issues with interface screens and dialog response selection, I personally think they look crappy to boot.

800xWhatever or 1024xWhatever are about as large as you can make the resolution and still see adequate detail on the sprites, too. Any larger than that and they start to look like ants.