Emulator

this effect is evident in some other games too:
z:ww (title)
ssbm (PlayerIds over characters in multiplayer mode)

probably some others that I haven't noticed.

In r1062, the Z-scale issue shows up in the OGL driver, but the title shows properly
(at least for me) in DX9. Vista 32-bit with NVidia 8800GTXs.

This may due a projection matrix problem, one projection hack could fix the player
labels in SSBM.

yeah, this can be fixed by a projection "hack" around line 480 (in the 'else')

if(g_Config.bPjHack2)
proj2 = 0.0f;
else
proj2 = 1.0f;

g_fProjectionMatrix[11] = proj2 + xfregs.rawProjection[5];

With 0.0f being the working one.
Ask me if you want the full Source Code with Gui and stuff..

This is also noticeable in Tales of Symphonia. The old projection hack called
Projection before R945 caused it to work. Lately that hack has been removed from the
emulator.

or
g_fProjectionMatrix[11] = g_Config.bPjHack2 ? 0.0f : 1.0f + xfregs.rawProjection[5];