Tell me if what im doing is ok:

1) Open Vdub 1.4.13 and load the .avi
2) I get the improver VBR audio message thing but I just ignore it.
3) Go to Video>Filters> add> TextSub2.23> load the sub file> OK
4) Then I go to Audio> Full processing mode.
5) Video> Compression> and select XviD MPEG-4 codec (since the input video is XviD).
6) Save Avi as... and choose a new name for the subbed movie.

Did I do anything wrong here? Also using TextSub how can I move the subtitles to be in the part of dark "letterbox" area of the screen? I dont want the subs to be in the actual image.