Read http://www.afterdawn.com/guides/archive/convert_avi_to_dvd.cfm and get the subtitles for that movie (.SRT form) which you make the selectable subtitles with. Probably you'll need to synchronize the subtitle: first doing anything else, play the movie with BSPlayer and se, loading the subtitle, if it's synchronized and , if not, modify it (a good application, for this, is SubTool)
I had trouble converting an avi to dvd. (I tried to find a good thread for this.) I used Winavi, but got file reallocation problems. Nero would not burn the disk without generating the dread "you may be making a coaster" message. DVD Shrink complains that one VOB file is bad. Really the VOB files are _good_, but the IFO and BUF files need to be recreated. Very tricky. That is solved by using Ifoedit to rewrite IFO and BUF files. Have Ifoedit work on just the VOB files -- delete the IFOs and BUFs -- and make new IFO and BUF files. Nero will now burn the DVD correctly. See this thread: http://www.avforums.com/forums/archive/index.php/t-137356.html But my settop player still wouldn't play the disk, though WinDVD would play it on my computer. Confusing. The home player generates an error when it first reads the disk. It refuses to play the disk at all. (I have Sylvania VCR/DVD Recorder. I'm told Cyberhome DVD Recorders don't have this problem and will play any DVD -- without regard to region or PAL/NTSC settings.) It turns out Winavi was genrating a PAL DVD. The fix is in Winavi when you convert to a DVD, click on Advanced. Then set the output format to NTSC. (Do not use the default setting, AUTO.) Finlly, after a day of effort, the DVD plays on my settop recorder.