>>>I created a VFP7 report which printed out nicely from a network laser printer (from my developing machine). I installed the application and ran the report in another W98 machine which attaches to the same printer (local connection). All letters became totally poor-formatted. [...] The test computer had its own MS San Serif which is older than the one in mine. However the problem is not solved after I replaced the font in the test computer with the font in mine. (My computer is W2000 and the test computer is W98)

For the sake of testing, could you try a TrueType font instead? Using bitmap fonts is something I always try to avoid in my reports.