I'm using a CL TNT2 32MB AGP and I have had absolutely no problems with any games I have run, including D3D games. I haven't tried FF7 on PC, but my brother did and it seems to have problems with alot of video cards.
I'm not sure exactly what AA does, or how to tell if it's working or not, but the graphics look great in 3D games and the video is never choppy or slow.
I'm using a Duron 600/MSI K7Pro with 128 MB PC-100.