Photoshop's Anti-aliasing option helps to make text appear smoother by painting the edges of the text with semi-transparent colors. When text is displayed on a raster monitor, the text is built using pixels, and since pixels are essentially bricks, the edges of curved type have a tendency to look ragged. By painting the edges of the text with semi-transparent pixels, the type blends into the background, creating a smoother look. Unless you apply a gradient or mask, text is typically one color; activating anti-aliasing can increase the colors (at the edge) to 6 to 10. While this works to make the text smoother, it will also make small text (under 12 points) harder to read. The trick with anti-aliasing is to experiment with the various options to determine which one works the best, and that means occasionally turning anti-aliasing off.
Type tool on the toolbox.
Layers palette, and then select the layer containing the text.
Anti-aliasing list arrow on the Options bar, and then select from the following options:
None. Turns off anti-aliasing.
Sharp. Creates visually sharp type in the active layer.
Crisp. Creates crisp type (not as sharp, as the Sharp option).
Strong. Creates a heavier (bolder) type.
Smooth. Creates type with a smooth appearance.
IMPORTANT
The anti-aliasing option is only applied to the type in the active type layer.