Confirmed by our own BFG10Khttp://alienbabeltech.com/main/?p=10608
After trying the 190.38 drivers on my XP system, I’ve found that AA settings at the application profile level are not being applied in Direct3D titles; they only work at the global level.
Aside from the annoying fact that you have to change AA values globally, it also means games with special AA flags such as Unreal 3 based games may fail to have AA applied in them.
Interestingly enough, OpenGL games seem to be unaffected by this problem.
I’ve seen several forum posts online confirming the issue exists with multiple 19x.xx drivers, and also that it happens on Windows 7 too.
If the issue affects you, I can confirm that downgrading to 186.16 fixes the problem, which is precisely what I’ve done until nVidia can fix this problem.