Subtitle problem - question marks instead of characters

[Excalibur]

This is the file http://tinyurl.com/c5wtlco

Movie is in mp4 format.
I tried everything, subtitle workshop, notepad, wordpad, different combinations. In workshop they are displayed properly, I tried to replace each character with number 000x (0001, 0002...etc), and then replace them back. But, VLC won't display these characters properly č ć š đ ž. Instead I get question marks and I with " above letter. Depends on character. Encoding is proper in VLC 1250. Other subtitles work.

Edit: I tried another subtitle with movie and again I have question marks instead of characters.

Edit 2: Now I tried totally different subtitle that has nothing to do with movie, skipped to part where Serbian characters appear and I get question marks? Same title that works normally with belonging movie.

How can a movie affect subtitle in this case?

[Excalibur]

I copied both streams (video and audio) into mkv and I have no problems.

So VLC has problems with mp4 file and latin-cyrilic (Serbian) subtitles.

Edit: Now this is strange and it's a final check. Video had separate english subtitle in srt format. I deleted subtitle and suddenly Serbian subtitle started working properly.

With final examination, VLC has problems displaying Serbian subtitle while this English was active (Track 1)?

[mederi]

What font do you use?
Tools > Preferences > ( Show settings = Simple ) > Subtitles & OSD:
Default encoding [Eastern European (Windows-1250)]
Font [Arial] << choose a proper font which can handle serbian characters
The file you have provided should be O.K. with these settings.

[Excalibur]

As I said, on final statement, movie came with english subtitle (.srt) when I putted Serbian subtitle in same folder, charaters were displayed as question mark. But when I deleted english subtitle file, Serbian began to work normally.
And yes, every subtitle works normally Arial - 1250 encoding.

Like there was some conflict between subtitles and I do not know how could VLC can do that. I will try something more, and if that is the case, you can try both subtitles (same folder in a movie) on some other movie if you like.

Edit: I've tested it with another random movie. It seems that this http://tinyurl.com/d5p4gog subtitle is making other Serbian character based subtitles into question mark.
How is this possible?
This and above in first post subtitle are in same folder as movie.

[mederi]

Unicode autodetection. If one of subtitles is in unicode format, then another subtitles are treated the same way.
Solution: convert all subtitles to the same format (Notepad: File > Save as... > Encoding: ANSI or UTF-8).