In Should I use fix-cm? the issue came up of strange output from Latin Modern. Here is an MWE to get this issue:
\documentclass[11pt]{article}
\usepackage{lmodern}
\begin{document}
TRUE
FALSE
\end{document}
has output as on the left of this image. Commenting out \usepackage{lmodern} produces output as on the right of this image. This is compiled with pdflatex in TeX Live 2012 and viewed with Adobe Reader 10.1.5 on Mac OS X.

Here is the result of \listfiles:
*File List*
article.cls 2007/10/19 v1.4h Standard LaTeX document class
size11.clo 2007/10/19 v1.4h Standard LaTeX file (size option)
lmodern.sty 2009/10/30 v1.6 Latin Modern Fonts
ot1lmr.fd 2009/10/30 v1.6 Font defs for Latin Modern
***********
Many sources around the web (Wikipedia, this answer) say that the hinting in Latin Modern is not the best. On the other hand, the default Computer Modern in TeX Live is apparently not actually Metafont, but the Postscript Type 1 conversion by Bluesky, which the same sources say is the highest-quality vector conversion of CM. Is this accurate?
Xavier provided this pdf which demonstrates the issue; it renders correctly on some systems and not on others. In Adobe Reader 10.1.5 it looks like this.
