In short: To avoid the standard pixel bitmap fonts and go for smooth, scalable post script ones, use one of the following:
\usepackage{palatino}
\usepackage{times}
\usepackage{bookman}
\usepackage{newcent}
or, for standard post script fonts
\usepackage{pslatex} or
\usepackage{ae,aecompl}
Be warned: the latter killed my Umlaute.
The more interesting stuff on fonts in LaTeX can be found here.
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