Am, check your inputs.
In other words, look at the numbers you have used in the various options at the top of the Story Editor.
You've set the Font Size to 200pt (which is very large but who am I to say that's wrong for what you want?);
Then you have the Scaling Width at 75% (I'm not sure why, it's not a normal thing to do);
You also have the Scaling Height at 10% (again, not sure what that's been done for);
And you have the Manual Tracking at 49% (same comment as before).
With these inputs you're getting what I would expect to see, which is large text (200pt) that's very squashed vertically (10% scaling height) with large gaps between the letters (49% manual tracking).
Set the Scaling Width, Scaling Height and Manual Tracking back to 100% and then try changing one thing at a time to get what you want.
P.S. I'd recommend not using the Story Editor for formatting text. Double-click the text frame and format "inline" instead (see here: http://forums.scribus.net/index.php/topic,2249.msg10304.html#msg10304
for a quick "video").