I use ConvertxtoDVD (PC only) - as long as you have the right .srt file and .mpeg or .avi movie, you would be able make a dvd from your mpegs with on/off subtitles. The program is also easy to use, just drag and drop files. By the way, make sure that your .srt file and movie file have the same name in 1 folder:
Example:
Koinomon.srt
Koinomon.avi
Srt files can be found here:
http://subscene.com/By the way, ConvertXtoDVD has only one main menu - you can assign chapters, but the chapters have no menu of their own.