"How to: Use Antialiasing with Text" [
^].
"When the Graphics.SmoothingMode property is specified by using the SmoothingMode enumeration, it does not affect text. To set the text rendering quality, use the Graphics.TextRenderingHint property and the TextRenderingHint enumeration." [
^].
Your code does not show any rendering of Text on the image.
Is your source picture a .jpg ? Or ????
What font are you using; is it OpenType ?
Why would you use a LinearGradientBrush to do Text ? Your second picture shows no evidence of any gradient being applied to the Text.
What are you doing in the Paint Event ?
I think you should take your source image turn it into a .png image, then draw the Text on it, and save it as .png: [
^].