In most CAM systems you can specify the segment length, this will then make the flats smaller or larger.
If you can just re-program VM to mill you a circle then it will output a G02/3 and the out side will then be smooth.
To mill a circle is very easy :-
(MILL 1.5 O/D BOSS WITH .375 DIA END MILL)
G20 G17 G80 G90
M6 T1
G43 H1
S1750 M3
G00 X.9375 Y0 (MOVE TO START)
Z0 (MOVE TO TOP OF JOB)
G03 I-.9375 Z-.01 F5. (MILL A CIRCLE AND MOVE DOWN .010")
G00 Z1.
M30
Graham.