AIR when i posted my textiure code earlier someone warned me that the settings i was using to create the texture would result in very low quality rendering.
I find the settings kinds of confusing, if I want high quality mip mapping and interpolation between then mip maps, what should I set?
There is a lot of info in the wiki site:
http://www.jmonkeyengine.com/wiki/doku.php?id=texture&s=mipmap
Check it out to see if it answers your questions. 
It really depends on how you will use it as to what "high quality" settings are. Especially if it's HUD usage vs. 3d model usage.
i think the best settings for a texture applied to a 3d mesh is filtering with FM_LINEAR and mipmaping with MM_LINEAR_LINEAR