Any advise on how to convince Compressor to create a file with readable film subtitles?

I have tried all the presets and while the titles are readable at "800" and "300" they are ugly at best. I assume that it's interlace issues.

Videos for the Web should be deinterlaced.

Videos for the Web should be deinterlaced.

Agreed but deinterlacing titles can actually degrade them. I am working with subtitles that start small.