I have this question: today I read the guide 'Convert DivX to VCD with subtitles'. I got all necessary applications, but I have this problem: TMPGenc (I have 2,58.44.152 version)does not load the subtitle, even if I put Directshow Miltimedia File Reader, in Envrronmental Setting, as you told in the guide: at the top priority (2). This doesn't happen neither in the 'preview' neither in the output. Please note that the sub name should be OK: the movie, if loaded with Windows Media Player, has it!! Did I do someting wrong? This is very annoying, because it forces me to use Virtualdub with a more passage and more lossy conversions!
The only method I have used is to use Virtual-Dub with the Subtitle Plugin to Frameserve the AVI file with the Subtitles to Tmpgenc to encode the file.. This is no more Lossy than any other Method cuz you are Only encodeing the AVI file once and Frameserveing it a Totally Lossless Process...