Confirmed on 1.4.6 vanilla and craftbukkit. Crashes server every time.
Crash log attached.
You are correct, I selected the wrong resolution status. Thank you.
The feature is working as intended, Optifine seems to cause some issues with the keen font.
Are you able to eliminate the issue by playing the game without a modded jar? My guess is that optifine (or some other change) has modified the font's behavior and broken this part of the UI.
Are you certain that this occurs on vanilla minecraft servers? I am only able to replicate the issue on Bukkit.
Marking invalid as I have seen no evidence that this issue occurs in vanilla.
I am also unable to replicate this problem with the large or the small GUI scale at any resolution.
Are you using the HD MC Patcher?
This is an issue that exists only with Bukkit servers.
Only the adults burn. Babies are not supposed to burn.
This isn't really a bug or even a suggestion.
Are you using the default texture pack? If not, try playing with that and try to replicate the issue.
Since when is the minecraft_server.jar downloaded from minecraft.net a 'modded version of minecraft'? This is 100% vanilla, done with no mods, default texture pack in the client, and a brand new world.
There is no way to get more vanilla than this.