Anti-aliasing is generally agreed to reduce "jaggies" and to improve distinguishing between small features in smaller fonts -- e.g. to make fonts more distinguishable when the font size is small compared to screen resolution.
Anti-aliasing is included in many modern graphics products including the Windows 98, Windows NT 4.0, and the Microsoft Plus pack for Windows 95. A free download for Windows 95 is available from Microsoft (except that as of 4 Jan 99, the web page link for it is defective).
Subpixel rendering is another technique that attacks the same problem in a slightly different way.
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