The problem was that Xorg could not get EDID info from the monitor through the KVM switch. As a result it was unable to determine the Display Size and set the DPI to 75,75.
Solution: I inserted: DisplaySize = 280 210
in xorg.conf after VertRefresh and all was OK.
Now to tour all the other forums where this question was asked by others and not solved....
Thanks for the help.