Re: Typo quality once outputted from AE7 - Any Suggestions?

DVD's and NTSC/PAL TV's are interlaced displays, with 480 or 576 lines. When using small type sizes, fine detail lines (such as the horizontal lines in T, F, H, L, E and others will tend to disappear/reappear as they may be only one pixel thick. If the text is animated with movement it becomes even more noticeable.
AE does a certain amount of anti-aliasing to smooth out edges on the text as well, which might account for the grey you are seeing.
Picking the right font, typeface and size and still meeting your design goals is the tricky part. Most folks tend to stick to bold typefaces and fonts without too much detail at larger sizes. There is no surefire solution since every design calls for different things. Experiment like you have been until you find a good mix.

Erik