Have a look at the names of the srt-files...
If your avi file is:
Then your srt-file should be named:
movie.avi.srt (and not movie.srt)
Works great with my beta4, so it should work for u 2
Thx for the tip, for the AVI's I have it works fine when I rename te srt-files as you said. But sadley enough it doesn't work for the mkv-files I have. All my HD content is mkv and here it doesn't work. Also DVD's keep giving probs when it comes to subtitles At least there is some progress for wich I'm greatfull. Let's hope they get the subtitle function working as it should.