Ok, So I followed the directions in the wiki and I did a search on this forum and still I cannot get subtitles to work.
Here is what I've done.
First: make sure that the subtitle file is named correctly and in the same directory as the .avi file.
File Name : movie.avi
Second: Make sure to uncomment the following lines in the xine.conf file on the MD where I'm playing the movie.(I also made the same change on the core)
Did a full regen on the MD.
Still no change.
I booted into the core and ran Xine from the desktop and loaded the .sub file and everything was working with no problem.
What am I doing wrong?