The filenames in display are too big, but I don't want to change the native resolution of my Windows 7. Is there a way to reduce the font size of the filenames? I want to see more filenames (not thumbnails) in display.
Yes, Preferences / Display / Colors and Fonts.
You may also want to turn off Preferences / Display / Options / Use visual style to draw items (Vista/Win7 only, overrides selection colors), and/or Preferences / File Display Modes / Details / Display icons if you really want to squeeze as many lines of filenames in as possible.