From what I can tell, Sharpen reduces anti-aliasing and thus introduces more jaggies.
As for Flicker Reduction, I'm convinced that they mean "Stutter Reduction", and they have it the wrong way around.
I say this because: when you check "Normal" Flicker Reduction, it unlocks the framerate by disabling Vertical Sync. This gets rid of most of the stuttering when the framerate cannot maintain 60FPS. This is what the default was in GT5... no stuttering but pretty much constant screen tearing.
If however, you check the "High" setting for FR, it appears to lock the framerate, which erradicates the screen tearing, but on some tracks, it results in stuttering, particularly in the cockpt view (even at 720p), as it cannot keep to 60FPS.