Application does not display properly on screens with increased DPI

Yes, I've ran into this on a few applications: DI Radio's beta application, iheartradio, Linpack, MorseCoder, Sudoku Free, Solitaire, Lightning Bug, ThrottleCopter, The Weather Channel, Beats (the DDR/Stepmania game), Bash Reader, ManD5, Sipdroid, Tunes Remote, Dotty Original, Calltrack, Wiimote, Bank of America, and ROM manager.

All of the official Google Applications (Goggles, Maps, Gmail, Market, Search, Voice Search, Shopping, etc.) work fine, as do apps such as KeePassDroid, AppBrain, Dropbox, WiFi Analyzer, Runkeeper, Foursquare, ConnectBot, Touiteur, Lookout, Tapatalk/XDA, Sensorly (though their splash screen does not properly show up, and is tiled), Root Explorer, Wardrive, and Dialer One.

I have tested adding a new option and things get stretched but doesn't look that bad... Definitely we would like to make things look as best as possible.

A little work-around that sometimes works: Open the Spare Parts app, and un-check "Compatibility Mode". This seems to work fairly well for XiiaLive, DI.fm, and other apps which were shrunk on the screen.

yap! same bug here... running xiia on galaxy.tab.p1000: froyo.xxjk5, kernel 2.6.32.9, firmware 2.2

xiia runs bugfree, but smallwindowed.... P.L.E.A.S.E try to fix this! :)

Same issue here on density change.  I'm running HTC EVO 4G, CyanogenMod 7.0.2.1, Android 2.3.3 Gingerbread.  I've done bug testing in the past for you Jona and again offer my phone to test any fixes you may have for XiiaLive.

The problem persists in both portrait and landscape mode.  There are no problems with the functionality of the app.  Just this cosmetic issue in the display.

I know exactly why things aren't looking that great and it has to do with a particular setting in the applications Manifest.  In any case if I change this setting the app get's distorted for devices such as tablets since we aren't ready for those displays.  I'll try to figure out if there is an easy way out of this limitation... But might not happen on this next update.

Thanks Jona.  I understand that I'm probably not your typical end user.  Keep me in mind for any testing if you'd like. 

I am running into a similar issue on the HTC Sensation that has the new qHD display resolution. The application also does not display full screen. It's somewhat shrunk towards the top of the screen when in portrait mode and shrunk in the center of the screen when in landscape mode.

Yes, we are aware of the issue with the qHD screen.  We are currently waiting for a phone with qHD screen so that we can fix the issue.