I think CatAI includes app-specific optimizations (eg, Humus' Doom 3 shader replacement) and fixes (eg, not allowing AA with PoP). I didn't realize it affected global IQ. I thought that was reserved for the texture, mip-map, AA, and AF sliders and checkboxes?
I think the problem there is just not enough resolution with too high contrast a section. (I mean, you're looking at essentially alternating light and dark lines basically a pixel high.) I think. (I'm trying to figure out why I see moire patterns in the aliasing, but that's probably a typical undersampling artifact.)
What happens without AA? With 6xAA? Can you take a screenshot with no, 2x, 4x, and 6x AA at the same spot (I guess by recording a demo of you just standing there for a minute) to see that AA is actually being applied?
What happens if you disable AF?
Oh, wait: CRT or LCD? It'd be odd if you were using a CRT, tho I think you are, b/c ATI's gamma "corrected" AA is supposed to be better tuned for CRTs, whereas NV's non-GC AA is supposed to look better on LCDs. I definitely see it with my CRT. Have you used a program or website to optimize your monitor settings (brightness, contrast, convergence)?