For the text labels, in the Configurator, they show up as opaque boxes. This is because the actual text is rendered by drawing a picture of each character onto the screen for each letter. MDX uses DirectX and so it is very fast and just draws the same image over and over by cropping different areas which is standard for bitmapping fonts. However the Configurator uses the default .NET drawing which is GDI+, and is much slower. Easier to program for, but much much slower. So drawing text where every letter is a character would just flash the screen when you move your mouse over the edit portion of the graphics section. Every time the mouse moves, it redraws. So basically that is the way it works. And the colour is the colour overlay of the text, so if the font you are using has white characters, then the colour you choose, will be the colour of the text. If the font is yellow, then by selecting blue as the colour the text colour will be yellow + blue = green.
As for the resolution, I have been designing at 1400x1050, and it should be ok at resolutions of 1280x1024 as well. I will try to make things more dockable so you can resize the window for smaller resolutions.