Question on Antialiasing

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What is aliasing / antialiasing?
How is it related to image quality and image transparency?

Does it make a difference to the quality of 3d images?

I was reading something about it on another web page, but didn't understand much of it, and I think I saw something about it on this website.

Also, are there any ways of increasing graphics quality other than increasing the resolution as in:
Graphics3d 1280, 1024, 32, 1
Anything else I can do?