How to add convert XVID (AC3 audio) to VCD with subtitles?

[NetRodent]

Without using Virtualdub's frameserving, is there other alternative?

I had successfully extract AC3 audio from the XVID (NTSCfilm) avi file using GoldWave, and isolate the video from the raw XVID.
And with this 2 new files, I generate a new MPEG (PAL) using ULEAD VideoStudio 6.0.
Unfortunately, the video clips contain non-english dialog, subtitles were needed. Frameserving using Virtualdub had not been succcessful with my old Celeron 466 processor, perhaps due to my inexperience with frameserving.
I had tried merging subtitles to avi prior to mpeg encoding, resulting distorted subtitle texts due to squashing of screen sizes during encoding.

Is there any tools to add subtitles directly to MPEG?

[kyemeng]

Suggest that you use Vobsub and Tmpgenc instead.
During the encoding of the video to mpeg, Vobsub should pop up and insert the subtitles into the mpeg. Burn the resulting mpeg with Nero. Please note that Tmpgenc chokes on AC3. Therefore encode just the video portion with Tmpgenc.
Search the guides for Vobsub.