Cathy,
This would be an excellent problem if solved. I have been fighting trying to work around this using ActiveX controls and writing my own container for the Device Context.
The BEST solution would be to get the report to the Device Context (DC) and the scale the DC. However, I have spent about 30 hours studying and trying to figure out how to do this. This is how EXCEL peforms the opertion when using Shrink to Fit. The fontsize is not changed. It just scales the entire DC.
If anyone else has figured out how to do this it would be greatly appreciated. I wrote a wrapper in Delphi but it has not worked as well as I wanted. I understand your delima.