Xbit Labs has posted an interesting article exploring the current state of anti-aliasing.

With the launch of every new generation of graphics chips, video cards performance steps onto a new level and the quality and quantity of various special effects grow in an explosion-like way. But however perfect present-day game graphics may be, however realistic the characters and the environment, the main feature of the display picture remains the same: the picture consists of pixels - Picture Elements. And it means that polygon edges are displayed as "jaggies" (stairstep-like lines) made of these pixels and it's not possible to reach an ideal picture quality until the "jaggies" are done away with

Full story here.