A method and system implements screening and a high addressability characteristic into an error diffusion process. A grey level value representing a pixel is received. The grey level value has a first resolution which corresponds to an original input resolution. The grey level value is then screened. A threshold circuit thresholds the grey level value and generates an error value as a result of the threshold. A portion of the error value is diffused to adjacent pixels on a next scanline. The screened grey level value can also be interpolated to generate subpixel grey level values which correspond to a second resolution. The second resolution is higher than the first resolution and corresponds to the high addressability characteristic. The threshold circuit would then threshold the grey level value and generate an error value having a resolution corresponding to the first resolution.