Making the image larger then reducing it will not help. The problem is there are only so many pixels to create the text. This is not going to change.

There are some bitmap fonts which are designed to read clearly at small sizes. You can find bitmap fonts at DaFont.com > Bitmap Fonts.

There are also 2 or 3 bitmap fonts in the Xara Xone Shareware Page. These fonts need to be used at the size they were designed. If you make them larger or smaller you will loose the effect.

Gary