idk if I'm answering the question but I used the one with extension .srt and in case of the encoding stuffs, I used both the external subs and the one encoded within the video. and the one happened where the subs coming out on bottom and top is the external subs, and the one coming out a little late and also usually appeared at first on top is the one which being encoded within the video.
as for the player version, I'm using mpc star 5.4, and I guess for the windows version (are you asking me my windows???), I'm using windows 7. I'm really sorry if I'm not answering your answers, I'm quite of a noob regarding these and thanks a lot for your concern!!