My system runs with the system fonts set to large, so text and controls tend to overrun the bounds of the dialog boxes. Ideally, the size of a dialog should be sized dependent on the system font size, with a max size limit applied based on the screen resolution. Another approach is to make the all dialogs sizeable.
I see this problem in quite a few apps, and it's mostly cosmetic. However, you sometimes end up with controls being sized off the edge of the dialog meaning that the user can't get at a feature - very frustrating...
Shane