Ever look at something that should be straight and has a "stair step" like effect to it instead of it being straight? AA fixes that. The more AA, the less stair-like it will appear. It basically smoothes edges.
Ever look at some textures, such as the ground off in the distance and notice its blurrier then the ground at your feet? AF fixes that. The more AF, the more defined the textures in the background will be. It basically eliminates blurryness on distant textures that could be more defined.
If you already have a high res, aa will be less effective because they are already made up of more defined pixels. Thats y i use af before aa because i usually play at 1280 or 1600 before i even touch aa or af. So i reccomend a high resolution, with some af if you can afford it. If u can afford more, go something like 2xaa , 4x af. That combination, at a high res, results in a very good iq.