I have imported subtitles from a text file, but they appear with bad resolution without antialiasing in the timeline monitor.
How can I fix this?

You can't - DVD-Video subtitles are not anti-aliased.

You can make it look a bit smoother if you use a stroke highlight with a lower opacity than the subtitle opacity.

Joe,

Thanks for that tip. I'm going to carry your suggestion over to another forum (Premiere Elements), where user is creating "subtitles" via the PE Titler and getting some jaggie results. I suggested certain fonts, etc., but had never though of this.

Appreciated. You probably helped two users with one answer - one in Encore with real subtitles, and one in Elements with faux subtitles.

Hunt