I have downloaded "Rec" and it comes with the .srt file I assumed that VLC would automatcally use it and display it but it doesn't. I thought it was a faulty .srt file but it still doesn't work. have also tried to burn the film using CONVERTXDVD and it doesn't work... comes us with gobblety gook chinese!! arrgh!
Open the srt with notepad and see if it is okay.It could be corrupt. In one instance, I had a srt file that was corrupt, Avimux Gui would report it an and audio file?!!! Then it should be named same as the movie and placed in the same folder.