I have the same issue. I entered 1280 x 720 for both mugen.cfg and system.def and still the same issue. The font is a bit bigger though once I modified those settings but still not as they should be. My background is 320x240 but it stretches properly. So where could this come from? Edit: Problem solved. In my options.def, my Type was "Type = truetype font" whereas it should be "truetype" with no "font". I got a headache trying to find that!! Hope it'll help future mugeners!