1. As I wrote, it is not zip so please rename it as stated (text file can't be uploaded here)
2. I asked you what settings are you using in PMS(for subs), what version of MEncoder, what OS
3. Maybe my source file was in different CodePage so output is corrupt...I tested on PC in MPC-HC with same behavior(corrupted diactrics)
I see two problems, one is MEncoder/PMS settings itself because subs are correctly rendered on PC and second one is diactrics which is wrong on PS3 and also on PC.
Will try another source of sub files (ANSI, UTF-8, ...)