i just downloaded the Win32 daily build of ResidualVM (22.05.2011 6:01pm) and to my surprise
i saw that the developers have begun work on displaying the subtitles in Grim.
So i tested the build and came to the following conclusions:
All subtitles (even Manny's in the intro) seem to be displayed. Whoa! That's nice!
...but the subtitle timing is a little too fast.
You can eliminate that by setting the subtitle-timing to low(est) with F1 inside Grim (running in ResidualVM).
I then tested the subtitle-timing in the "real" game (GrimFandango.exe)
and found out that to get the same subtitle speed, you have to set it to middle.
So my suggestion would be to change the subtitle-timing in ResidualVM to let the text appear "slower",
so that the "middle" setting gives you the "real" timing.
Oh, and please remove the annoying mouse cursor while being inside the game...
Thanks and keep on rocking!