Cannot display Greek letters and correct font size in figure window

Hi, I am having a problem with figures. I used to use commands like the following to have Greek letters in my plots without any problem:
xlabel('\epsilon')
However, after I upgraded to 2013 version the above command gives just 'e' for the axis label. When I use latex interpreter as,
xlabel('\epsilon','Interpreter','LaTex')
it seem to be working but the font becomes italic which I do not want. In addition, the axis label does not seem to change size. These issues happen in the figure window. However, when I save the plot to an eps file, both the Greek fonts and the font size appear to be correct! Does anyone know where the issue can be? I am using Linux (Ubuntu) which I recently upgrade too, if that is relevant.
Thanks

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