I have the same problem. I realize this is an old thread but the "Video Settings" aren't working. The only two working are small and auto size. Normal, Large, and Auto are the same and Small is around the size of Normal. Normal is how I usually have it, it's just that the graphics are screwed up. I'm currently restarting my .minecraft folder hoping it will change. I will edit this if it works.
EDIT: Eureka! Restarting the .minecraft folder does work as of post date.
http://xenoncraftserver.enjin.com/profile/2178835/pics/detail/album_id/183444#pid=2401996
http://xenoncraftserver.enjin.com/profile/2178835/pics/detail/album_id/372854#pid=2402648
If you mean the interface is too big, you can change the GUI Scale in Video Settings.
EDIT: Eureka! Restarting the .minecraft folder does work as of post date.