What is your graphics driver version?
Have you tried the latest version?
It seems somthing wrong with the new drivers from intel. I have faced same problem here on my laptop. For testing I've installed the driver from Microsoft Windows Update and now the Panel Fit Scalling is working fine.
1. uninstall the driver from device manager also check "delete the driver software for this device" so that it can't install same driver again.
2. restart your computer
3. after restart go to control panel > windows update > check for updates
4. select Important Update > Intel HD Graphics driver and install.
Intel Core i3 2.53 GHz (380M)
Intel HD Graphics
Windows 7 Ultimate x64