Alright, some experiences doing some resizing.
Paint.NET plugin is better than the standalone resizer. Why? Paint.net can handle transparencies rather well.
So my further experiences with XBR. It's pretty smooth, the lines are smooth but it likes to round corners and angles quite a bit which may make it unsuitable for things that contain lines which consist primarily of hard 45 or 90 degree turns.
Keep in mind that running a x4 resize will baloon the filesize of your output dxtbz2 a whopping 16 times over the original whereas resizing any image by x2 will increase its size only by a factor of 4. Consider whether your texture details will be worth the massive filesize of a x4 resize.
== IMAGE SCALING AND SHELL BACKGROUNDS ==
One downside to the dxtbz2 format is that
DXT is a lossy format and if you look closely the quality of custom shell backgrounds you may notice a some 4x4 pixel blocks that look a lot like JPEG block artifacts. DXT achieves good compression rates by dividing an image into a bunch of 4x4 (16 pixel) chunks, then paletting each chunk down to 4 distinct colors.
Therefore you would do well to see if the conversion to DXTBZ2 format introduces any artifacts or loss of color fidelity. In the case of things like custom buttons and interface elements, rescaling these can be beneficial if you want to reduce visual artifacts and maintain sharpness when the shell is autoscaled
If you simply want to maintain perfect color reproduction then you would want to upscale your source image by 2x lengthwise by 2x heightwise; this leads to increasing your DXT's filesize by 4x however it allows you to have more accurate color reproduction and reduces artifacting (use nearest neighbor, if you want 100% accurate color reproduction and zero artifacting but have some pixilation visible, use a 'sharp' upscaling method like XBR or maybe HQX if you want to reduce the appearance of pixilation, at the cost of a small amount of artifacting).
Some comparison shots:
XBR (2x resolution, then autoscaled by shell) its good if you don't mind smoothly rounded edges
HQX (2x resolution, then autoscaled by shell) some edges were cleaned up manually in paint.NET
Source to DXT Autoscaled (autoscaled by shell)
Source to DXT Autoscaled :: Close Up dxtbz2 compression artifacts are more visible when you pay attention
Actual Source Image (not autoscaled by the shell) Clean edges but low resolution
