but this method hardcodes the subs on the video, right? i was also looking for a solution on how to burn a dvd with selectable subs from a .srt source. i got dvd-lab pro, but looks like for this method, you'll have to dissect the .avi or .mpg file and separate the video and audio, then import the .vob file and .wav or .mp3 file into dvd-lab pro for authoring. dvd-lab pro does let you specify the .srt files for the subs though.
still, a bit too complicated for the casual burner. nero works fine if you just want to burn your video files into dvd format, but i wish there was a way it could include the subs.