Michael Gibson:

You are right. It is an issue with Alibre. It has to do with its display settings. The image I posted above is taken it Alibre 2012. Everything, as always, is set to maximum. However the new display settings don't allow for adjustment beyond a particular point. To test this I imported the same file in Alibre 2011. Her one can still set the minimum circular facets. I set it to 80 et voila the edges were now nice and smooth.

Michael T:

Alibre 2012 display settings have changed since 2011. The screenshot you uploaded is no longer applicable.

Please see here for more details: http://forum.alibre.com/viewtopic.php?f=10&t=14080