The displayed text overlaps when I use the LaTex interpreter within MATLAB R2011b Prerelease on Maci64 for text and mathematical symbols on a figure within a LaTex math operator '$ $'. I enclosed the text within the LaTex math mode using the '\mbox' tag.
For example, the issue can be reproduced by running the following command:
set(title('$\mbox{Graph of } y=f(x)$','FontSize',14), 'interpreter', 'latex');set(xlabel('$\mbox{Independent variable} x$','FontSize',14), 'interpreter', 'latex');set(ylabel('$\mbox{Independent variable} y$','FontSize',14), 'interpreter', 'latex');
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