See if this helps you: http://jsfiddle.net/panchroma/qK8j2/
In your example, you have explicity set the font sizes and there's nothing instructing the fonts to scale as the viewpont changes.
Setting
body{ font-size:62.5%; }
simply sets the font size (relative to the browsers default setting), it won't result in any scaling.
A couple of ways you achieve what you want is to either set sizes for h1, h2, p etc as the viepoint changes using @media queries , eg
@media (max-width: 480px) {
h1 {font-size: 2em }
h2 {font-size: 1em}
p{font-size:1em}
}
or you could set a default body font size at different viewpoints and the font sizes will scale relative to the setings you have at the head of your CSS file, eg
@media (min-width:481px) and (max-width: 767px) {
body{
font-size:90%;
}
}