Why are the fonts and graphics pixelated or jaggedy at 640×480 resolution?
Since the native resolution of the XPi CD’s LCD screen is 800×600 pixels, anything below that will appear jaggedy. More modern systems solve this problem with anti-aliasing, or the smoothing over of the jagged edges, but this requires faster video cards equipped with a lot of memory, and unfortunately, the XPi CD does not have this. If you do want a smooth-looking resolution at 640×480, you have to press Fn + F7 (font key). This shrinks the active display to about 9.5 inches (diagonal) and leaves a black border around it.
