I have elements 11 and the only option is anti-alias on or off. Doesn't seem to do anything either way. It happens with all the fonts downloaded from Dafont. Simon Script is an example. So frustrating! I have to be missing something.

Whenever I download a new font to photoshop and try to type the some text in a new document the font comes out pixelated. The smooth text option is on. I've tried created a word document changing to pdf then to jpeg and placing in photoshop and this is pixelated too. Help! I am using photoshop elements, but have experienced this in CS as well.