Alright I am running a Geforce xfx 6800 gt.
Here are my card settings.



Here is my lfs option settings



and here is my result, what am I doing wrong?

I'm looking really hard, but not seeing any graphics problems?

I can see a skin isn't lining up, but that's a skinning issue... I'd say whoever made that skin didn't line it up correctly with the skin file-to-lfs mapping, OR that's a skin that was made for a much older version of LFS (the skin mapping changed slightly quite a while ago)

what he's trying to point out is that what he sees is not 8x AA and 16x AF. I dont know anything about graphics cards, sorry

Quote from flymike91 :

what he's trying to point out is that what he sees is not 8x AA and 16x AF. I dont know anything about graphics cards, sorry

:doh:

Check to see you've not got something setup for LFS.exe in a different profile (in the drop downs), and make sure you're not running LFS in windowed mode.

Lower you AA to 4x, that´s more than enough depending on the resolution of course. Set the Z-Buffer to "24" in LFS. Make sure you haven´t enabled the optimizations in the driver panel.
Set the Negative LOD Bias settings in the driver panel to "clamp".

Try to enhance your mip bias to 0. Disable "dither".

Last thing you could try is change back to an old driver, because the new drivers don´t care about old card´s image quality. I still use 92.91 from xtreme G with my 7800 GT. Having tried new drivers don´t change the image quality, but won´t allow me to overclock without crappy ntune. The new control panel is a pain in the arse, too.