C++/D3D: ID3DXFont drawn on rt texture is stretched

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Hello,

I am creating a rendertarget texture (in the default pool), setting it as a current rendertarget, rendering some text into it with ID3DXFont, restoring the default rendertarget and rendering that texture with ID3DXSprite.

The problem is that the text drawn on the texture appears stretched, and I can't figure out why:
http://img404.imageshack.us/img404/1828/badtext3zm.gif

The dummy test project (VC++6.0) can be downloaded from here:
http://www.freewebs.com/valsoftfl/badtext.zip

Thanks.

- Val