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As of today's mini update it's now easier than ever to tweak your games res to its highest settings right from the games own configuration. Before the only way to use the highest background resolution settings was to tweak your PC registry codes or use the Windower program. But now you can do it right from the real games FFXI Config icon while the game is not running.
Just open the FFXI Config, click the "screen size" tab. Then select the overlay graphics resolution of your choice (bigger is better). Then choose the background resolution of your choice and now the new choice of the 2048x2048 resolution is there. This is twice what the previous official res offered, and will in effect stretch the resoultion out then refit it into the limits of your screen. Giving everything a smoother, nicer look like it has anti-aliasing.
This is only for players on PC or Xbox, unfortunately PS2 doesn't offer such settings. You will need at least a reasonably decent gaming powered PC, not that it's Crysis 2 or anything but it will tax your PC more than lower resolution would.
Today's update also cleaned up all the icons such as linkpearls and LFG or bazaars so they are smooth and not pixelated. Overall things are looking much more clean and tight, with a huge influence from the player made tweaks that have been used now for years. But now made available to all players.
Now if only they would increase the draw distance