Uh, not quite. Change all stipples to 0.
Stipple is a performance improving method for slower computers. It affects shadows negatively. Instead of using nice alpha blending on the polygon shadow, it uses a stipple pattern. If you want the "best" eyecandy, disable stippling.
http://wiki.polycount.com/TransparencyMapScreen Space Stipple
Screen space stipple uses the alpha test method but tries to fake the soft edge of alpha blend by drawing/not drawing pixels in dither patterns, at the resolution of the screen pixels. This is often called screen door transparency.
It writes depth and doesn't blend, so it's fast and cheap and it doesn't have any sorting problems. The downside is that it's not really transparent (it's just on/off) and at low screen resolutions it looks horribly pixelated.
_________________________
My personal licensing agreement: In exchange for my hard-earned cash for your product, you agree to the following terms: No part of my hardware may be used as a mechanism to verify or reverify my economical patronage. My receipt will serve that purpose. If you disagree with this license, you may return my money to me, and I'll return your product.