I’ve found a simple way to fix this issue without modifying any Windows file. Just download and install DirectVobSub (VSFilter) to display subtitle. Using it, you can also set the text size, color and placement displayed while playing movies.
Download DirectVobSub (393 KB)
Note: A correct subtitle (SRT) file must be there in movie folder to show its subtitle. You can download subtitle for Internet movies @ subscene.com