You keep the shadow mask options the same. See http://docs.mamedev.org/advanced/hlsl.html.
You do not want HLSL to be too sharp. One of the benefits of HLSL is the nice blending of pixels you get. If you try a computer with heavy dithering, like the Sharp X1 or NEC PC-8801, you should not be able to notice (or barely notice) the dithering there.
HLSL has changed a lot. You might want to generate a new config to see how the new defaults compare to your old settings. See also docs/hlsl.txt for details on settings.
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