This conversion process, takes a few minutes (or a few seconds in many cases) and it doesn' t re-encode the video so its quality remains exactly the same. The generated subtitles are "soft", not burned in the picture, so the user is able to activate/deactivate through his/her player' s remote control the same way it does at normal DVD playback.
There are two such subtitle formats that can be used alternatively depending on which your player supports better.
anyvideo.divx, to play in your hardware DivX player.
To see the subtitles you have to activate them through your remote control much like you do with normal DVD. Check the configuration page of the program for the offered options. Maybe you have to put a smaller number at "Vertical Position" field if subtitles are selectable, are selected, but do not appear. The generated file is a regular avi and you can rename it if this helps the player.
In a similar way you can convert srt to idx/sub. You have to go at "Configuration 1/SUB 1" and select idx/sub instead of XSUB. To view the video just place it together with the generated idx/sub: