Actually, you can use multi-threaded decoding for H264 in VLC. Like my last post, install FFDShow through a codec pack such as K-Lite and it gives "use multi-threaded decoding" as an option.
I have personally tried MPC and it's terrible for 1080p content. I attempted to watch an episode of Macross Frontier (1920x1080 23.976FPS) and while taking up 25% CPU (quad-core) the video lagged every second or two.
VLC however uses 7% on the same PC and plays lagless.
As for subtitles, I've never had any trouble with subtitles. If it's really that difficult to get subtitles working then you're probably doing something wrong or the encoder had no idea what he/she was doing.
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