FSAA = Full Screen Anti-Aliasing. This smoothes out jagged edges in 3D models. Since there are no long corridors in perspective, etc this is not as important in BD as it is in 3D first person shooters or driving/flight simulators. Actually, I have FSAA disabled, and have not noticed any jaggedness in the 3D character models.
I don't know what the conflict is between the method used to make screenshots and FSAA.

Repairing items during combat is just as realistic as pausing. <img src="/ubbthreads/images/graemlins/silly.gif" alt="" />