draw text on arc error in 2010?

[ProgMtl]

When drawing "text on an arc" in 2010 it seems to want to space the text out evenly along the arc (making it look really spaced out). I'm having this problem in every drawing I'm attempting it on...

Yet when I open the same drawings in 2008 and create "text on an arc" it spaces it out correctly...always has worked perfectly with new drawings created in 2008 also.

I've checked every setting I can think of (even making sure it's the same in 2008 & 2010) to no avail.

I'm wondering if anyone else is having this problem?