1. An image rendering system comprising: a scanner that scans an image and produces high resolution image data; an encoder that is coupled to the scanner and encodes the image data to provide encoded image data including anti-aliased grayscale text or lineart data that includes an identification of boundary pixels and associated pixel values, wherein the boundary pixels include both ON and OFF pixels and are determined to be any pixel in the image data having at least one of eight nearest neighboring pixels being of an opposite color, the encoder separates the-boundary pixels into interior boundary ON pixels and exterior boundary OFF pixels and separately sets a grayscale value for the interior boundary ON pixels and the exterior boundary OFF pixels; and a decoder that is coupled to the encoder and decodes the encoded image data to provide decompressed data including anti-aliased text or lineart data and renders the decompressed data.