The UV layout dictates how the texture will appear on the model and it is indeed saying the faces on your model are tall and thin when they are not. It's like getting bad info on someone's size and then buying pants for them, it just won't fit right. Also, as Dave said, its better to use a test texture so you can see the stretching/bunching. A lot of people use images with letters or numbers so they can see if some UVs need to be flipped/rotated etc.

The test texture is from here.