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ClearType triples the horizontal resolution available for rendering text through software so that the result is clearer display of text on a Liquid Crystal Display (LCD) screen with digital interface. But don't let that lead you to believe it's only good on an LCD display! If you have a good quality CRT display, you may also benefit from ClearType. For CRT users it seems a matter of taste, but why don't you try it?
To enable ClearType font smoothing, right-click on your desktop, select Properties, select the Appearance tab and press the Effects button. There is a drop down box to choose between Standard or ClearType font smoothing.
When you have ClearType enabled, you can go to this Microsoft ClearType Tuning page to fine tune your cleartype settings.