Found a use for that second post after all:

Alright, I just finished watching the test. It looks very good, but here's 2 critiques for making it better:

The subs definitely need to be blurred slightly to fit with the slightly-blurred GOUT picture.
You tend to have the subs end a couple frames before the shot changes. I'd keep the subs visible until the last frame of the shot if it's that close - that way, it's a more natural transition, since you're changing the entire image anyway. That's part of what I don't like about player-generated subtitles - they almost always go a little too far after the cut, or end a little bit earlier, whereas most burned-in subtitles will end ON the cut.

For example, "I told you not to admit him" needs to end 2 frames later, as do "You weak-minded fool," "Your mind powers will not work on me, boy," "There will be no bargain, young Jedi," and "I shall enjoy watching you die." "He's using an old Jedi mind trick" is perfect, though!

And, of course, adding the grain to the subtitles (in addition to the slight blurring) will make it blend significantly more seamlessly.