@ExSport,
Hi I tried everything that you said, but still there aren't any subtitles. When I try to play MEncode file with external subs, video freezes. The file (on the print screen) is avi, but when played through MEncode with subs is shown on the TV as .mpg.
I have tried with 2 other video files .avi and .mpg with MEncoder external subs, but still with no result - either freezes or shows file is not supported. May be there is a problem with the settings, but I have no idea how to check.

I use PhilipsPFL3xx7 1.2.zip config file and have tried Philips 32PFL4017.zip config file as well.
My TV is 32PFL3807H/12 with the latest firmware so far T921E 2.12 and I have played .mkv with .sub through USB. According to Philips support, to be able to play BG subs (Cyrillic) via USB, the file should be saved as unicode not ANSI.
When I play the file noencoding ext subtitles the video plays without a problem, but still no subs. I even checked with English subs. I have tried with .srt; .sub, saved as ANSI and unicode, but to no avail.
Please help

update:
I used a new .mkv file and .srt. MEncoder still freezing, but with noencription the subs are streaming but instead of Bulgarian are showing in English and the weird thing is that the .srt file is in Bulgarian on the computer
