Cool. Now I might actually play through the whole game. Until now the ugly font has stopped me from doing that. Really looking forward to getting my hands on your hack 
Anyway, did you hack the intro font as well? I seem to recall it used sprites instead of regular backgrounds.
Indeed. In fact, I believe the main dialog font is also sprite based with all those pretty colors. I was going to apply
nuVWF to Terranigma some time ago, but I wasn't able to adapt it to handle sprite based text engines. I never went back added such support to the core as it greatly impacts the whole thing.
We already have a
Terranigma 8x16 hack. I also recall DaMarsMan's VWF hack. In all cases, nobody re-formats the text appropriately for the job. That's 50% of the battle. I really hope mopoz intends to do so.
I don't remember now, but did Terranigma pull it's text straight from the ROM? Or is buffered or decompressed in RAM? If it's not pulled straight from the ROM, it should be trivial to add an auto-formatting routine in there and save yourself the trouble of dumping and manually dealing with the text. Even if it is direct from the ROM, I'd probably add a buffering routine to push it to RAM and still add the auto-format routine before I'd deal with the entire script manually.
That gets you as far as the menus and misc. text. A good auto-centering routine would take care of those items names and menus that uses that window shown in the screenshots.
Let us know if you run into any problems. I'd like to see the game given a proper facelift.