When you create a web graphic that includes text as part of that graphic, many programs turn the text into noticeably pixelated images.
The drawback? You have to use a universal font - something that everyone has, like Arial or Times New Roman. If you use a font like "WayOuttaHere", it will only show up on computers that have this particular font installed.
"I want to make a logo with word art (specially formatted text). It looks very jagged. How do I smooth it out?"
If you are creating your logo in a photo-editing program that has anti-aliasing, this is never a problem. Unfortunately, PrintShop/PrintMaster do not have anti-aliasing, so if you are using these programs to create a web logo, you can improve the look of your logo by finishing it with a good photo-editor. (e.g. Adobe PhotoShop Elements, Paint Shop Pro, MS Digital Imaging Pro) If you don't have such a program, even MS Paint will work almost as well.