Based on some email I received from "radish" and a thread in the Tivo UK forum, I have updated DisplayText to version 1.1. The latest version is available on my web site .
The modification was to use module newtxt2osd instead of newtext2osd which supports a better looking screen font (descender characters are not chopped off). I got the newtxt2osd file from this thread. I have added the newtxt2osd module to the displaytext.tar file instead of linking to cwingert's web site which only has the older version.
To install displaytext, put displaytext.itcl in the tivoweb_tcl/modules directory and put newtxt2osd in the /var/hack/bin directory (if you use a different directory for your bins, edit the itcl file). Make sure the newtxt2osd file is marked executable (chmod 755 /var/hack/bin/newtxt2osd). Finally, restart (Full Reload) TivoWeb.
By the way, the background color can be set to 0 for a tranparent background. However, characters may be hard to see depending on the TV image so I left the default background color as 1 (gray).