I'm trying to get this game running efficiently and I'm using a lot of information on these boards for settings and without AA turned on it runs perfectly. I want to turn it on because I'm running it on 1280x800 so that the image doesn't stretch and look horrible but obviously on such a low resolution the jaggies are very obvious. For example even the logo screen on startup where it zooms into a nebula before displaying a logo my fps will drop to about 35 before going back up to 60. Any word on why this happens and how I can enable AA without the fps drops? I can live with it if necessary, I don't play these games for graphics, but it'd be nice.

I've heard of problems like this with nVidia cards that are sometimes fixed by reverting to older drivers . . .

Also, how old is your card? If it's using straight supersampling, it's basically multiplying the cost, so 2xAA at 1280x800 is comparable work to no AA at 1920x1200.
(Also, if you have an LCD screen you might be able to convince it to use a border and display the lower-res image un-scaled - this would a) improve the look with 1:1 pixels, and b) allow you to use a higher res without stretching.)

(And drops into the 30s or even occasionally into the 20s shouldn't have too much impact on gameplay, especially since precision aiming isn't exactly a major part of this game.)