Well most texture stretching can be fixed by squashing it into the right dimensions in the first place, so that the game stretches it back out to look accurate, this is a pretty common occurrence for older games.
But I don't know what you mean by feathered VS Anti-aliased, as all the edges of the letters and even the shadow effect are a solid color with simple Anti-aliasing, not feathering.
I wonder how I could get Tonberry to acknowledge an alpha channel or if it would support a TGA format or something, because there has got to be a way around this, I refuse to believe after all these years we still know so little about how this game's inner workings operate, some of the text boxes in the game are semi transparent, so it's just a matter of figuring out how to get it acknowledge the edges of things properly.