How on Earth does Anti Aliasing work? This is the most confusing thing in all of Blender I mean I have never got Anti Aliasing to work the only thing that I have got close to doing in the form of SMOOTHING is to use a Blur Filter but I want to see those Stair Jags smoothen.
How does this work?
Anti-aliasing only works in a standalone player, not when running from within blender. Depending on what graphics card and driver you are using, it sometimes only works in fullscreen standalone mode.
I don’t get it it does not do anything all I receive is a Syntax Error whats going on?
Are you running it as a script? It needs to be run as a 2d filter (actuator) attached to an always sensor.
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Did just that and nothing happen
To answer how anti-aliasing works, it smooths out the aliasing in 3d images. (So helpful 
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So when you have a straight line: |, but then put it onto an angle /. Anti-aliasing smooths the pixels out… I really suck at explaining and don’t fully understand it 100% myself…
Here’s a picture, right side is anti-aliased-ed.
It is less a 3D feature rather then a render feature (vector to bitmap render). Your example (a 2D vector shape) is a good demonstration.
The simplified render technique assumes the middle of a pixel determines the overall color of it. This is a valid assumption within a shape but at the edges it leads to these “stairs” artifacts. These artifacts are noticeable on low resolution screens and “thin” lines.
To make this appear a bit more natural to our eyes a pixel can be covered by multiple different shapes. The resulting color is a mix of these shapes. In the above example a mix of black and white shapes. Dependent on the ratio the pixels gets different shades of gray.
There are multiple different methods to do achieve AA. All of them increase the render time.
Alternatively you can increase the resolution. But this depends on hardware. Higher resolution (with same physical size) usually means more render time too.