Adobe Type Manager Light's on-screen smoothing is only for PostScript fonts:

- from the ReadMe for 4.6.2 for Mac:

I couldn't find this on Adobe's web-site, so I've taken the libery of putting it here: do let me know if it's available elsewhere

Font Smoothing

When font smoothing, also called anti-aliasing, is enabled, ATM uses 15 shades of intermediate colors to blend PostScript® Type 1 font color with the background color on screen. The actual number of intermediate colors displayed on screen depends on the number of available system colors. On monitors set to display thousands or more colors, ATM smooths both black and color text on various background colors. On monitors set to display 256 or fewer colors, ATM smooths only black text.

When you select (i.e., highlight) smoothed text, QuickDraw (the screen rendering language used by the Macintosh) swaps the foreground color of the text with the background color. All of the other colors in between are left unchanged. This produces a jagged halo around the selected text. To reduce the severity of this effect, you can change the highlight color to a lighter color in the system's Color control panel.

Because ATM uses QuickDraw to smooth text, it can smooth text only when an application uses QuickDraw to display its text. Some applications use QuickDraw to draw an off-screen monochrome bitmap image, then display their own color images on screen. When an application uses QuickDraw to draw on off-screen bitmap image of a font (e.g., with colored or skewed text), ATM cannot smooth the fonts. For example, Deneba Canvas™ and Microsoft® PowerPoint® do not support smoothed color text or skewed text.

Font smoothing is not supported in Adobe Acrobat® versions earlier than 3.0 and MacDraw® Pro.

The following Adobe applications have their own font smoothing function, and do not use ATM for this purpose: Adobe Premiere (all versions), Adobe Illustrator 7 and greater, Adobe Photoshop 5.0 and greater, Acrobat 4.0 and greater, ImageReady 1.0 and greater, ImageStyler 1.0 and greater.

Font smoothing is not supported in ClarisWorks™ when the monitor displays 256 colors or fewer.

Some applications (e.g., QuarkXPress®) do not support smoothed text while you are typing it. The text is smoothed when the text box is updated