That particular AA worked Fantastic for me. The game looks superb and still plays at the capped 30 FPS (I have the steam version and am waiting). I have the HDR off on mine, just as a preference. The exact setting I have on mine (and it looks freakin' fantastic) are:

Antialiasing compatibility on, set to 0x0000F0C1, for me that is [Gothic 2/3, Trine]
Antialisaing mode, set to Overide any application setting
Antialiasing setting, set to [16x CSAA (4 color + 12 cv samples)]
Antialiasing Multisampling Enabled

As I said, the game looks and plays fantastic. And this does make a very big visual difference, it almost feels like a different game even.