Smooth meshing during animation

GaryGraphic

I am finding that smooth meshing doesn't work during animation. Is this true?
 

By upping the smooth meshing interations when working on my animation works when viewing frame by frame renders, but as soon as I go to rendering the animation it doesn't seem to work at all in the final rendering, that is, all the poke-throughs show up as if I didn't have that option turned on.

Hope I made myself clear.