Great post. If you read the first post of this thread you will note that I'm using Sonic Scenarist as my authoring program. I am aware of the differences between anamorphic and letterbox subtitles and how to create them.
At this time, I'm still contemplating whether or not to burn the alien subs directly to the video. If I decide to burn them in, I also need to decide whether or not I want them on the video, or on the black bar below it. I really don't know what how I want to do this, so everyone please feel free to give me your opinion on the matter.