Wrong Resolution
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Solved by GoodBytes,
The problem is simple. It is not a problem.
Windows 8 look at your screen size (something it can now do), and resolution, and compare and pre-set the DPI for you.
If you have eagle eyes, or your are on a TV, and want to use as a monitor, then you need to slide the DPI setting back to 100%.
Once you do, hit the Apply button, and restart your system (or sign out and back in) for actually applying it (else it just does a simulation of 100% and everything will be blurry). And voila!
To find the option:
-> Right-click on your desktop, select "Display Settings", then click on "Make text bigger or smaller" link at the bottom of the panel, and you'll have the slider, or radio box selection. Pick 100%, Apply and as mention restart your system.

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