How to create/play movies with subtitles

[dombi]

I cannot get the subtitles to work out with my converted movie. I have tried to search for a step-by-step guide on how to do this, but I could not find any info on it. The documentation is not very clear for me on the site, so I figured I would ask here.

1, I used OSEx to create a VOB file.
2, I added it to ffmpegX, then under the "Filters" button I extracted the subtitles to an .idx format. I tried .srt as well, I just did not have the patience to retype the whole movie. It kept asking every single word...anyhow.
3, Then I used XviD format the normal way I do (set movie properties, sound, quality, output). I also checked the subtitles button under "Filters" also "Loaded" the .sub file, selected the Burn option and started the conversion.
4, As a result I have the following files:
movie.idx
movie.sub
outputname.avi
outputname.avi.idx
outputname.avi.sub
original.vob

where movie does actually show up as movie, the "outputname" and "original" of course refer to my specific movie name.
5, I tried to play the movie using VLC, but no luck. The subtitles do not show up. Of course I do not really know how to tell VLC to play the subtitles, but I tried to open the .idx and .sub files with it, but it is a no go.
The .avi file plays just fine. The video and audio are all there. I thought that the subtitles were supposed to be burned into the video. Isn't that the case? Is that actually possible?
If not how can I play the video showing the subtitles as well using VLC? Did I do something wrong? Thank you,

d

[Case]

5, I tried to play the movie using VLC, but no luck. The subtitles do not show up. Of course I do not really know how to tell VLC to play the subtitles, but I tried to open the .idx and .sub files with it, but it is a no go.

From the README.MacOSX.rtf of VLC 0.7.2:
9. Support for files with subtitles.
- Only MicroDVD, SubRIP, SSA1-4. SAMI and vplayer subtitle files are supported at the moment. (so not VobSub [.idx AND .sub file])