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DownRez has a bunch of meanings. If by downrez you meant going from HD to SD and watching the rendered result on TV then you will have interlaced issues with your fonts that are difficult to deal with. If you mean downrez to go from 1080 to 720, there are other issues. Not as many, but there are still issues. If you're going even to other sizes there are still issues.
Let me detail just one issue. The font example you provided has serifs and varying line widths. In the top line the words "don't get destroyed" for example show me a bunch of problems when downsizing. Say the narrowest part at the top of the "o" in "don't" was 2 pixels high and you size your 1920 X 1080 comp down to 720 X 480 (NTSC) the narrow part of the top of the "0" is going to be less than 1 pixel (oops, there's nothing less than 1 pixel) high so it's going to go funky on you. It will also flicker on TV because the line will be 1 pixel wide and 1 pixel wide horizontal lines will always flicker on an ntsc display because of interlacing.
Throw in compression artifacts, motion artifacts, and noise that is introduced just by the huge contrast difference between your white type and the black background and you're got all kinds of other problems with the design.
TransCoding is best handled through the Adobe Media Encoder or other 3rd party encoders because there are more options that you can get with the Output Module in AE, but even the best endoding in the world, to the best codec in the world won't fix design problems that break the rules. I don't know any way to make the small type at the top of and bottom of your example look as good on a SD device.
A little better description of exactly what you want to do will help.
Thanks Rick, I understand quite a bit of your extremely helpful post!
1. Points VERY well taken about serifs on the font. I'll change that pronto. Super helpful. I know exactly what you mean, right on the money.
2. I'm downrezzing from HD `920 x 1080 to SD 720 x 480 to put on a DVD for entry in various film festivals.
3. I'm on a Apple mac pro running the Adobe Production Suite. Given that, any other 3rd party vendors on good terms with Adobe that I might explore the transcoders of also?
4. I've got the opacity settings on my black/white text portions down to 85%.
Perhaps I could make the white text just a tiny bit grey to further address your points.
But my biggest concerns at the moment were on how the colored type displayed and, upon reflection, quite a few problems are directly caused by using a bad font containing serifs that I will discard immediately.
This is a super helpful response you provided. If any other thoughts or tips come to mind, I'm all ears!
You've probably forgotten more on these topics than I know.