After much serious effing around, the new logo is working in both the Xanadu 1 and 2 Opening Visuals.
It's going to need to be tested on real hardware, because both games are now having to apply their "sparkle" effects to much more data than before.
They both seem to work fine in Mednafen ... but there's no substitute for a test on real hardware.
I added a drop-shadow on the Xanadu 2 subtitle, and although it really does help to stop it from disappearing into the background, I'm not convinced that I like it, yet.
Maybe it needs more tweaking, or maybe it should just be removed altogether.
What do you guys think?
<EDIT>
Added original Xanadu 2 Japanese logo screengrab without drop-shadow for comparison.
It's interesting to note the huge effect that having the drop-shadow has upon the eye's perception of the colors in the subtitle text.
With the drop-shadow, the orange colors look much darker and more saturated, even though they are exactly the same RGB values as the orange colors in the original Japanese text.
The eye really has a hard time resolving single-pixel-wide text on a similar brightness background.
That's why we went to such lengths to darken the message box backgrounds and add the drop-shadow to the in-game text in Xanadu 2.
But ... in this case, it's not really critical that you can clearly read the subtitle text on this screen, because you get to see it clearly and read it on a black background before the landscape fades in.
In some ways, that makes the subtitle seem to fade away into the background as the landscape fades in, and perhaps that's what Falcom wanted. This is the only time in the game that the subtitle is used. The graphics for it are in the game's Main Menu, but Falcom chose not to actually display them.