That depends on how familiar you are with the concept of encoding divx video. If you are new to the subject I recomend using easydivx (www.easydivx.does.it), as this software does everything for you. It enables you to choose codecs, aspect ratio, audio stream, subtitles, filesixe and number of cd's, output resolution, bitrate etc. etc. The downside is that you have no control over the processes involved. On the other hand if you are familiar to the concept try using gordian knot with virtualdub + nandub + vobsub. You will need heaps of software and plugins for this but they can be found at www.doom9.org. If you only refered to making subtitles, try subrip, subripper or vobsub. Personally I use vobsub as it is easy and effefctive.