Well, CountryBumkin and all other users,
DirectVobSub cannot be used as additional filter for ifo/vob movies (info for glynor) and the ffdshow Video Decoder subtitles simply don't work with SRT files (although it says it does, oh well)
The simplest solution is to use MKVMerge (MKVToolnix, free, download here:
http://www.bunkus.org/videotools/mkvtoolnix/downloads.html), there the first VOB part should be added (this loads the video and the audio), then add the SRT language file of your choice (don't forget to set the language code in 'General Track Options') and hit 'Start muxing', 2 minutes later you have a MKV container which plays perfectly fine with MC16 including subtitle
In the future I rip DVD movies directly into a MKV container format, quicker and easier
By the way: the sister project of MKVMerge is MKVExtract, which is the ideal splitting tool for tailoring a movie to your specific needs
thanks