Out of curiosity are you able to get a video (with Fraps, for example) of the camera issue?
Also what's your estimated FPS (I know you said it's unrelated to frame rate, but I want to know how the game performs on the system, generally speaking)

The frame rate in the main menu is 60. In-game it's usually either 60 or 48. Not sure why the 48, but that's what it is depending on your orientation, and regardless of graphic settings.

I'll try to snap a video.

On the matter of anti-aliasing, are you using MSAA or SSAA? SSAA effectively downscales the image from a higher resolution and is far more effective and nicer looking than MSAA which is a somewhat edge-detecting AA method. Obviously, SSAA is insanely more taxing than MSAA, but I doubt it would make a difference for a game this old.

Here's a video of the main menu at 30fps, captured with the game vsynced to 60Hz:
https://vid.me/efMR

I'm not sure it's easy to tell what's going on at just 30fps, and I suspect browser-based playback will also add its own pacing problems, so here's a frame pacing graph of the main menu (though a different capture). The uneven part is when the camera moves from the projector to the table:

And two graphs from in-game:

For comparison, here's an example from a different game that does work okay (not sure why the spikes):

EDGE ALIASING: I'm using the game's "fullscene antialiasing" at x4. Despite the name I think it's actually MSAA. I don't think a DX8-era card could carry the game at SSAA?

TEXTURE ALIASING: In the video above you also see the texture aliasing, on the gun grip and typewriter keys. This happens also in-game on certain textures. Looks like something to do with mipmap selection. On one hand some parts are blurry in the distance, but others are very shimmery. The only driver setting that helped some is forcing transparent textures AA, which helps trees. Couldn't find a way to improve opaque textures.

I've noticed that in MAFIA and never found any remedy.

The 60FPS thing seems to be a cap. Not sure about 48FPS.

The city also has issues with choppiness. The game engine doesn't like having lots of textures loaded. Most textures are pretty awful and as for aliasing, check out those wire wheels. Anyway, plenty of trivia later, I have nothing to offer but sympathy.

60Hz is what the monitor is capable of. 😀