I'm just about to. It's a big step, as the engine is 2D, but I did a few tests using another project, and it was not great. Still, I'll post back here with sprite results. Thanks for the suggestion.

-Michael

EDIT: I've switched over to 3D sprites placed a certain dist in front of the camera, and then tilted so that they appear 2D. There was enough difference between this and panels to make it worth it. I can now use particle effects in 3D, and the movement is less jerking (something panels were doing).

However, most of the antialiasing I solved by scaling the units up a bit and using .tga's with alpha channels. I then used a black outer glow on the outlines of the units, which blurs them a little. It works, but it only fakes antialiasing.