I should clarify what I said earlier. When I mentioned that AA&AF&Mipmapping settings were broken for me, I meant in other games that actually make use of it, not FFXI.I have no problems with my card. Keep in mind, driver level AA does not work at all so you're not gonna see anything happen there. AF & mip-map work fine, though mip-map you're gonna have to regedit in order to see anything noticable (default is really, really low).
I think if you look up troubleshooting on ATI's tech support site, they still list the issue of installing only 2.0 versus installing 1.1 -> 2.0.
This is one major reason why Microsoft still gives you the option to even install 1.1 before installing 2.0 on Windows Update, because ATI CCC isn't the only .NET application that's been reported to have this issue.
Happened for me on 3 seperate systems now, hence why I suggested that OP should take a look at it.
XI Wiki

