Image Titles and Categories Dressing will not interfere with each other and can be used at the same time.

For v1.3.7 you need to use Image Titles v1.1 - some of the base files are different in v1.2 for v1.3.8 and will cause errors in v1.3.7.

In general, you can make a text replacement image the same size as the heading it is going in. Sometimes you may want to make it a bit smaller.