First try using the monitor's native dpi by entering it's size in mm into xorg.conf. Here's mine:
Section "Monitor"
Identifier "Monitor0"
VendorName "HP"
ModelName "Omnibook lappy lcd"
DisplaySize 285 213
HorizSync 43.89-48.51
VertRefresh 60
EndSection
Identifier "Monitor0"
VendorName "HP"
ModelName "Omnibook lappy lcd"
DisplaySize 285 213
HorizSync 43.89-48.51
VertRefresh 60
EndSection
If your monitor's native DPI makes still too small text, try increasing it by removing the DisplaySize line and starting X with
X -dpi number
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