I fixed it on my system !
It all started when I noticed that different skins have different fonts for the CodecInfo overlay during full screen video.
One of the skins I used showed almost the entire line, even when using VDPAU (which generates a lot of extra text)
After some digging I figured out which skin file controls the view of this overlay window.
The file is called
VideoFullScreen.xml (inside the skins 720p folder) and in it it will refer to a font that is to be used, (In my case 'Font_RSS_Unicode')
I looked through
Font.xml (in the same 720p folder) to find a font that had a smaller size. For my skin (Neon) I found a font called 'Small' which was 14pt instead of the 25pt used by "Font_RSS_Unicode".
After changing the VideoFullScreen.xml to refer to this font (i just replaced every instance of Font_RSS_Unicode by Small in the file) and restarting the entire machine I first thought it had not worked but suddenly later noticed that it had changed the font size, which is now considerably smaller. (maybe some sort of caching)
Helpful links:
http://wiki.xbmc.org/index.php?title=XBM...t.xml_File