Originally Posted by snobel
The Fixed font is only for debugging, AFAIK, and not used in the game.
As you've found, because the row height and character widths are in pixels, if you upscale the texture you must upscale the character dimensions and padding too.
Number of entries in the file should be number of characters + (number of texture lines - 1) + 2. Number of characters includes zero-width chars. There's a max of 256 characters.
You ran it by clicking on it in an explorer window? It's a command line tool, so must be run from a powershell or command prompt.
That does look pretty good.
Is a x16 upscale really necessary, though?
It's possible that a less drastic upscale (e.g. x4) would have a smaller offset. You may also be able to find and adjust relevant Pos_Y entries in DX2UI.ini.
Adjusting those values in Default.ini mentioned in my last post may help here.