I have my settings set to maximum, which includes anisotropic filtering (8x-16x) and anti-aliasing (4x-8x) and every other texture to HIGH.
However, it is quite noticeable, that the quality of asteroids is horrible and sometimes you can even see low and high resolution textures together, which means that they are mixed up!
Shadows, at lest some of them, are also jagged off, or they have almost no rendering, even when you force your GPU settings through ATI Catalyst Control Center.
I think that only shadows related to asteroids pose such issues.
I do not know, if in-game anti-aliasing and anisotrophic filtering even works now, in the update 1.2.0.
I also tried only application, not the game settings.
PvP and Open Space is affected by this.
Screenshot 1: (you can clearly see more high resolution textures on the left and low resolution textures on the right, both being merged)
Screenshot 2: (you can clearly see the jagged or very grainy shadows)
These 2 screenshots were taken in Open Space, Jericho - Threshold.
There are even worse examples.
The sole reason why I am calling this a bug is a mixup (both low and hi-res textures) of the asteroids.
Shadows are probably related somehow.
I suggest to improve and fix this texture issue on the asteroids and both shadows and broken edges or jagged looks.