Usually having more AA (anti-aliasing) smoothes the edges..Check your graphics card settings..You may need to find a balance between quality and speed..
Just out of curiousity, what graca (graphic card) do you have..?
You have to set AA in your Catalyst Control Center(CCC), you can go there by right clicking the red ATi logo in the right down corner of your screen
Hi Third Mate,you should look at this tutorial I wrote a few months ago, it explains how to set-up antia aliasing with ATI cards :http://80.95.161.114/shipsim/forum/index.php/topic,19579.0.html