I copied a drawing from another file and the fonts are very distorted (ARCWY2HC). When I place new text into the drawing I get the same distorted fonts, especially fonts that have curves.
Do an Identify on the text to make sure that it is "normal" ie slant is 0, aspect ratio 1, etc. Check that none of these has a negative value.
If that doesn't give you the answer, take a look at how far away from the Absolute Zero point you are (Absolute Cartesian and draw a line from the text location to 0,0). If you are miles away, try moving everything closer the the 0,0 point.
Hope this helps