Thanks, uggabugga.
I went through the guide. Everything was set up as per the directions. There were a couple of places where things just didn't match up. For example, it says:
There is no "directvobsub" in the long list of available filters.Next select "movie post processing". Double-click "directvobsub" from the "available filters" list.
directvobsub is same as vsfilter
it deals with subtitles
you can find it on sourceforge, it comes with combined community codec pack, might be worth a look for all-in-one answer
for koolman, i think that's a subtitle error too
do you have vsfilter installed, with a DirectVobSub folder in your program files?