Edges are Jagged When importing to CS3

Hi,

I have CS3 but just got the trial for CS4 now as well. I have been having a problem with photoshop CS3 for quite some while but accounted to Photoshop in general until I started using CS4 today. When I import a tiff (after working on the NEF/RAW in Nikon Capture NX2) into CS3, the image appears with very hard and jagged edges (eg. along the outlines of a face, cloth, etc.) instead of being smooth. In NX2, these edges are smooth, but not in CS3. Moreso, when viewing the same tiff in CS4, the edges ARE smooth and don't have this jagged or extra hard look. I guess this can also seem like it is extra over sharp. You can notice it at 16 percent, but also at 40 percent and more magnified as well.

Is there a setting I could change to fix this problem? It feels like I've tried everything but I'm sure there is something I'm missing.

Thanks!

whem you say 16% and 40% do you mean Zoom?
if so, zooming is ONLY for your eyes, doesn't mean the image is jagged.
Maybe there's a change in the zooming algorithms from CS3 to CS4, but that is not relevant for the final job to get done.