Monaco does not render with anti-aliasing at size 10, though it is AA'd at 8 and at 11 and up.  I'm not sure why this is; I poked around a bit on Google to no avail.  In Terminal.app there is an option to use AA that seems to override that issue ( i.e. it renders 10pt Monaco with AA).

Anyhow, I just switched to Bitstream.  But having the non-AA as default is probably a bad idea since it looks terrible : ).

Cheers
Luke