I have no experience using dvdx ... did you try checking the "Original Colours" option? Also, I have no idea how dvdx extracts the subs. ALternatively, use a tool like subrip to extract the subs from your vobs and use (win)submux or I-Author to add them as BMPs to your video. You will end up with SVCD- or CVD-style subs - these are selectable (you can have up to four subtitle tracks) and you will need a standalone capable of displaying them (there are no software players supporting selectable SVCD subs). vcdhelp.com will give you an idea if your standalone supports such subs ... Alternatively, you might consider using dvd2svcd - it will do either burnt-in (like dvdx) or CVD/SVCD-style selectable subs for you.