Hi gmahler5th,
> http://www.stevetout.com/sample.jpg
the pixelation is visible only on high resolution ... Pedantically speaking there is no way to remove pixelation as it is after all made up of pixels and it some resolution, they are going to show up ...

However, you can further smoothen the edges and reduce the effect using edge anti-aliasing.

http://www.arraich.com/ref/general_info.htm
Q: What is anti-aliasing?
A: Pixels are square. They're stacked up in a grid with vertical sides, and horizontal top and bottoms. They fill vertical and horizontal lines just fine, but curvy, or slanted lines necessarily use the pointy edges of the square pixels. This creates a jagged edge. Anti-aliasing smooths the appearance of these pixels by softening the color transition between the edge color, and the background colors. You do have to remember to choose it before using a tool.


check these links for information on how to do that
http://www.grafx-design.com/02gen.html


Cheers!
Sunny:o)

http://www.widearea.co.uk/designer/anti.html
http://graphicssoft.about.com/cs/general/
http://www.phong.com/tutorials/anti-alias/

use the line/pencil tool and press shift and do the diagonal you want

:)

You can after do a little gaussian blur (effects -> blur -> gaussian blur) with a very small value just to 'anti aliase' the lines

why not just use the brush? :/ the line tool youre talking about is the pencil, the line tool is actually a vector shape tool and you will get clean sides.