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After installing the previous beta, I had to change the size back to 'Small' because the new icons where now larger and blurry - but the treebar was still okay.

That is indeed expected. This is mentioned in the beta.txt file. The treebar/switchbar icons may look better than the toolbar icons because they are being scaled from a larger size. However, this is a temporary change. Its purpose is to allow users to check if the toolbar/switchbar/treebar and servers/favorites dialogs are correctly handling larger icon sizes. The release will revert to how previous versions work.

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Installing the current beta (808) with my setting still set to 'Small' the treebar has now become very cramped and is cutting off the text of channel names.

Thanks, the chopped text has been fixed for the next beta. As for the treebar being cramped, the change in icon width is 16 pixels to 20 pixels... so the difference in length is 4 pixels.