This is the best thing I have found on the net.. forget taking hours to encode subs to an AVI etc.. this app does it in seconds and converts the AVI to DIVX too (may be subject to your default encoder though)

http://www.videohelp.com/tools?tool=AviSub


You load in the AVI you want to add subs to.. load in the txt/srt/idx file you want to use (you can also add 3 sub files if you want)

set the subtitle options(or leave them as default) and click generate.. 20 seconds or so later it was done.. and excellent quality too

The only proble I had was that my DIVX player won't play the subs if they are in .srt format.. but i'm playing around with it and will let you know if it turns out OK with a different format like TXT or IDX.. the actual movie though played even better than when it was an AVI.. weird I know, but again could be due to my player liking DIVX better than AVI or something.. no ghosting or anything..

ok, well I'll get back to you

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