hello
I really like VLC and use it a lot. We depend heavily on subtitles and I am a fan of soft subtitles. I know there are many formats that are supported by VLC. I think the best solution is a standard compliant MPEG4 file. Subtitles are fully integrated into the mpeg4 file so you dont't have to care about a separate subtitle file. In quicktime/iTunes and even on the iPhone you can select such a subtitle track via View>Subtitles.
But: This part of MPEG4 seems not to be supported by VLC? Why not???
You can find a testfile with working subtitles here:
diagonal.com/mp4/
I would also like to see a possebility to select different audiostreams/versions encapsulated in mpeg4 (also supported by qt)
cu t.