I'm actually almost finished with Jedi Classic. I still have to do the sound, and menus and etc. I'll start its own thread and discuss it in more detail soon. I will say that if your expectations were set high by the previous Classic Editions, this one will impress you even more.
As far as Jabba goes, the subtitles will be done as subtitles. I haven't done them yet.
In fact, that was a big problem, because the burned-in subtitles on the laserdisc, when I removed them, made one shot of Jabba look not as good as I'd have liked. It's my least favorite shot in the edit. But 95% of the work, I'm quite pleased with. Most of it is amazingly seamless, and it's certainly a much better version of the film.