New Monitor Question

My old Dell CRT was on its last legs, so I picked up an Envision H190L at Best Buy today. It's analog only, which is fine since my video card is analog also. Its max (and recommended) resolution is 1280x1024/75hz, which is where I kept the old monitor set. I don't know if this monitor is too modern for my video card (a Radeon 7200), but I get jaggies on graphics and pixilation on text. The folder icons have a somewhat pixilated shadowing on them, as if the color resolution was set lower than 'true color' (32 bit).

Granted, this isn't really much to complain about compared to how much better this LCD is in general than the CRT, but with all setting being equal, is there a way to smooth things out? I made sure I had the latest drivers for my video card, and there was no disk included with the Envision. The manual says the Windows plug-n-play drivers should be just fine. Is this the best I can do without another hardware upgrade?

PC: Dell 1.3Ghz w/ 512 RAM and Win2K

Which setting are you using for Display Properties > Appearance > Effects > Use the following methods to smooth edges of screen fonts?

I put that on when I was playing around with the settings earlier today. No noticeable affect when I toggle it.