To the left is 3D Arcade running with default settings. To the right is the exact same model using my settings. You'll notice that all surfaces are in focus and at full resolution. This is because I enabled Anisotropic Filtering as well as antialiasing. Well, let's turn those suckers on!
Go to your control panel, and choose display. Now go to the settings tab. Click the "Advanced" button.
Now, if you don't have an NVidea card, you'll need to figure out your video card's equivalent options. In my case, I go to my video card's special GeForce 6600 GT tab, with its driver options. A separate window pops up to the left with more options. I choose "Performance & Quality Settings"
You'll notice the default "global driver settings" have most options as "Application-controlled". This is good for most programs, but we need to force certain settings for 3D Arcade. We don't want to force the settings for all programs because it may affect their performance.
Click the "Add Profile..." button.
Name your profile "3D Arcade" and click the "Browse..." button. Go to wherever you installed 3D Arcade and choose the fe3darcade.exe file.
Now enable the forced settings for Antialiasing and Anisotropic filtering, and change them to whatever seems prudent. I don't even have them at the highest settings and things look good.
You're done! These settings will go into effect whenever you launch 3D Arcade, and things will look much nicer.

