The good news is that the devs have said they are going to try to sort this problem out for patch 1.2.
Currently:
The game supports higher resolutions than 1024x768 but the 3D external views are upscaled from 1024x768 (approx) to the set resolution. I should note that I still think the periscope view is in full resolution but has s/w AA applied making it look blurry.
The game does not support hardware FSAA at all at the moment
Rather than EXPAND the view area for wide screen owners horizontally they have CROPPED the widescreen view area vertically so widescreen owners have the correct aspect ratio but can't see as much as 4:3 users. The devs haven't mentioned anything about this to my knowledge.
The game seems to have some issues for people who run through TVs, a number of posters have reported that 720p currently doesn't work even if set in the game config file manually.
The larger the screen you have the worse the 3D view will look....
The game has the potential to look better than nearly any other game right now imo. For me this makes fixing the Res and enabling h/w AA (in that order) the most important issue because on a big screen the problem is so obvious.
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