Help for upgrade from 6.06 LTS to 7.1 gutsy

[Ray Edester]

I don't know if this is the proper forum... But,

I have upgraded my Ubuntu 6.06 LTS to Studio 7.1 using a CD brought to me 
by a friend.

I ran the validity test on the CD and it passed.

ALL works very well except;

ALL GUI screens/sub-screens have TEXT shown only as clear blocks.  ie; 3x6 
(5x9?) pixelations(?)  In Icon names and Kicker Line. This, of course, 
renders the desktop all but unusable.

During boot, I see a line;

"Could not init
/var/lib/defoma/x-ttcidfont-conf.d/dirs/Truetype"

Yet, when I enter the following from a terminal, it appears valid with many 
entries displayed...........

root at ray-desktop:/var/lib/defoma/x-ttcidfont-conf.d/dirs/TrueType#

The SET command shows the path as;

PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/X11R6/bin
                                                        
I would certainly hate to have to reinstall 6.06 and lose a lot of work put 
into the OS over the year(s)!!!!  

If anyone has some ideas I could surely use them as this has gone on for 
nearly a week and I have gotten nowhere, so far.

Tks,

Ray