Antialiasing is a technique for cleaning up jagged edges, it isn't related to the problem you seem to be having.
Flat monitors are bad at showing resolutions other than the one theyre rated for (often 1280x1024). Try using the auto button on your monitor to make it adjust to 1152x864 if it's too horrible.
Note that even if it looks bad on your monitor the frapsed stuff will look just fine.
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