According to http://www.videohelp.com/glossary?A#Antialiasing:
Why would that be?When creating DVD Menu text, antialiasing must not be used.
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I think they mean text in sub-picture highlights for the menu selections, not menu text that is always visible. In my experience attempting anti-aliasing for sub-picture highlights makes the highlight less readable.
DVD subpictures use only 16 colors. Antialiasing will create many different colors. The color reduction for subpictures will screw them up.
You can use only 4 (only3 if you do not count background) for sub-picture at a time. So if you want to use anti-aliasing you have only 2 more colors to make it so, each color for different shade. You can do it in Photoshop or maybe latest subtitle creators can do it too automatically, not sure.
Check it out here: http://home.comcast.net/~c.linke/dvdsub/
Thanks for clearing this up, guys.