I don't know. Promo materials claim that the Real3D Pro-1000 has this capability but Model 3 is probably a stripped down version. Keep in mind that the games also run at a paltry 496x384 resolution on CRT monitors. The videos of Scud Race I have taken off of an LCD seem to have what looks to me like aliasing but it's hard to tell because of the recordings' motion blur.
Something that will impact the image quality of distant objects is mipmapping, which Model 3 definitely makes use of but which as far as I know is ignored by all emulators. It's probably the last thing on my priority list because of the non-trivial changes to the rendering architecture it will require.
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Re: Update: Texture upload problem solved. New videos, Sega Rally 2 pics.
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