Thanks for the quick response Kyatric,
Pixel rounding did work with the objects that were flat, however ones that i had rotated at all still have the same thing happening as you can see in this pic.
<img src="http://dl.dropbox.com/u/13312935/example2.png" border="0" />
Fully up to date with graphic drivers and construct.
Im not sure if a capx would be useful but here it is.
Or perhaps you shouldnt be rotating tiled backgrounds at all?