This is what I see in game with edge smoothing set to medium, which is equivalent to 4x Anti-aliasing....
I've seen screenshots from a friend who is using an Nvidia card and he is seeing the same thing and he is actually running at High/8xAA. That also seems to be an issue. I'm seeing no difference between Medium and High edge smoothing. Both settings look identical.
What I'm trying to figure out is why some edges seem to show proper smoothing and others don't. If you look at the fireplace, couch, end table staircase and kitchen table, they seem to be showing proper smoothing. If you look at the stove and fridge you will see rough edges that are not smoothed to 4xAA.
It can't really be seen very well in this picture, but the speakers on the stereo, the chair backs in the kitchen, the sink and toilet in the bathroom and the walls also have very rough edges. I'm seeing this all over the game. Some edges are smooth, while other edges are very rough.
Could other players with edge smoothing set to medium or high, also post a screenshot showing what their game looks like? I don't have this problem with any other games. The Sims 2, Oblivion, Fallout 3. All these games I play at 4xAA and I know how smooth the edges should be.
Edit: Changed to thumbnail and increased size of the picture to better show the rough edges. When you view the picture use the full size option to see it more clearly.