Hi, Kimber and Laura.
The correct way to use matching questions in the Lesson is to put the longer texts into the left pairs and the shorter texts (as short as possible) into the right pairs. Is this what you are doing?
The text that goes in the right pairs is displayed as a drop-down list of single lines. Obviously if that text is longer than the space available on your screen, it will be truncated, regardless of which platform and version or which browser or version you are using. Well, maybe some combinations of platforms, versions and browsers will chop off more text than others (also depending on the size and definition of your screen)...
In Moodle 1.9.x, a Lesson matching question with longer texts in the left pairs and short (a few words) in the right pairs will display almost "correctly".
Unfortunately, in Moodle 2.0, the left pairs are displayed inside what looks like a ridiculously narrow column, with lots of unused empty space on the right (see attached screenshot). I have reported this in the following discussion:
Unusual display of matching question (lesson in Moodle 2.0.1)
and suggested a fix on Tuesday, 4 January 2011, 12:27 PM.