Can't load .srt subtitle files with .MTS files

[tunafish]

Can't load .srt subtitle files with .MTS files
I can load them fine with other video formats.
I open the video in VLC and than >video >subtitles track >open file and load the .srt file.

What's even more If I create a folder with inside the myvid.MTS and myvid.srt file I can not load the myvid.MTS file on it's own!!
If I move the video out of the folder I can open it fine.
If I than do the >video >subtitles track >open file for the .srt the monitor window closes and I cant open either anymore.

I had VLC v2.0.1 installed, downgraded to v1.1.9 Same problem.

On my XP Bootcamp partition opening the files works fine, I can actually just select both, right-click and open in VLC to layer them.

What gives?

Here is the log file when I select both files and open them with VLC:
http://pastebin.com/5CV0QQPZ

[tunafish]

Ok for anybody looking for an alternative:

Movist lets you select both .MTS and .srt files > rightclick >open with Movist
http://itunes.apple.com/it/app/movist/id461788075?mt=12

[nkoriyama]

Known issue (limitation) on all platforms.
You cannot play MPEG-TS and external subtitles file together.