Ok, im doing some tests , what ive done is resized one of the extras from a dvd to 352 x 576 (cvd resolution), so this should give some good picture results at a lower bitrate. Now my quastion is do i need to resize the subtitles for this new resolution ??

I was told else where that no they dont, on a standalone they will play fine, but on a software player like power dvd the subtitles will be over to the right, and that resizing them will mess the subs up.