If sometimes the subtitles disappears with VLC 0.8.5 under Windows, with non-english subtitles:
* When you open the movie, you can choose the subtitle file.
Next to it, there is a Advanced Settings. When you click it, you can change the encoding according to the ISO codes:
ISO Standard for various characters sets
ISO-8859-1 works well for most western European countries and this should resolve your issue.
If you want to set it for all your movies :
Go to Preferences, Input/Codecs, Other codecs, Subtitles. From the Subtitles text encoding pull down select your character set. Then press Save and close the player.
By the way, if someone could confirms/infirms that this still happens with nightlies builds, this would be awesome !