Okay guys, I have just tried reactivating my template and going with default settings and it worked. So I guess the problem is in the conflict between the new version of WP and my old template.
Thanks for your help, I will try to investigate this further on. If I won’t be able to resolve it, I will just go with new threat. This one should be closed.
I am looking at all possible options and still can’t seem to get closer to the solution.
Here is a screenshot:
http://3.bp.blogspot.com/-wxV3-bhBHCo/VghOZFeAGXI/AAAAAAAADkM/f2E32pJTcpU/s1600/problem.png
Please note that I have removed all of the irrelevant information and as you can see in the admin panel, in the edit.php section, all text has one thin font but the names in the post list are in bold and have unusual blue background.
Unfortunately I have tried all of the abovestated but it stil didn’t work…