When I run Wine the text is heavily pixelated. Is there a way to correct this?
To enable smoothed fonts in Wine you will need to run regedit and change these settings.
You may also want to install the free windows core fonts and even the Tahoma font. Most Linux/Unix operating systems come with nice fonts also such as the Liberation font set.
Wine has supported font smoothing, including subpixel since wine 1.1.12.