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.