AFAIK, Epic weren't able to give a proper renderer in time hence the AA problems and low res graphics at spots. besides, I've said it before, and will say it again, UE3 engine has inconsistent graphics. It's noticeable in UT3 screenshots too. But I am sure that after few tweaks and revisions, UE3 will look stunning. as an example, see the graphical difference between UE2.0 and UE2.5, the latter has much better graphics and textures. ofcourse, If all this fails, there's always CryENGINE2. which looks better than all current engines anyway