If you have movies with subtitle files (.srt or.idx/.sub) you know that you are unable to watch them through your Xbox 360 media center and other players that do not support subtitles. It's a shame that the Xbox can't handle these separate files and display your video with them.
There is a work around. You can install PS3 Media Server (initially it was developed for the PS3, however it has grown and now supports the Xbox 360) and serve your files with the subtitles and watch your movies with subtitles on your Xbox. I don't like this method for a few reasons,
1.) This means I need to have another file server software running on my computer to serve the files to the Xbox and then to my TV. I already have windows media center for this.
2.) For some reason PS3 Media Server doesn't allow me to fast forward or go back on my videos that are being streamed. Some do, but MOST don't. And I can't seem to figure out why they don't allow seeking. Sometimes it's with the same file extension, so I'm assuming it has to do with whatever codec was used.
So if you want to watch your movies on your TV through your Xbox via media center and WITH subtitles, you will need to embed those subtitle files into the video.
This can be done fairly easily with a video converter. I will recommend ImTOO Video Converter Ultimate 6. When you load it up you will notice a Subtitles dropdown menu towards the top of the main window. If you have a subtitle file with the same name in the same folder it will automatically load it. I.E. my movie.avi and my movie.srt.
Then when you go to convert the video file, it will embed the subtitles into the video file itself. You will want to use a software called GSPOT to identify what format your original video is in. Load up GSPOT and drop your video file into the software. It will display the video codec and audio codec used. Try to use the same video/audio codec in ImTOO Video Converter when you go to convert the video. This way it should be fast and won't mess with the file much. Before you go to convert the file, also check to see how the subtitles look. Click the subtitle dropdown and select to edit/customize. Then change the font size and vertical position of the subtitles to your liking. Then confirm and convert your video file. It will take some time depending on your CPU and graphics card in your computer. The converted file should have the subtitles embedded and now you can load it up on your TV screen.