We have just tested using the latest generic drivers for this video controller and no similar issues have been seen or reported.
I suggest you to test using the customized driver that was provided by your laptop manufacturer and check directly with them to see if they can reproduce this issue using their drivers and the same system configuration that you are using.
This looks like an issue with Windows' internal font smoothing, called cleartype. Try fiddling with your cleartype settings (start->type "cleartype" into the search box -> open and use the cleartype control panel).
@shaddamiv Hi, thanks but I actually have ClearType disabled - with it enabled, text in *all* applications is blurry and fuzzy. With it disabled, the text is sharp and crisp in all apps... except, unfortunately, in Windows Live Mail and IE9.