Are there any ways to add subtitles in a VCD once it is burned? What I usually do is I conver the *.DAT file into *.AVI, then I convert the *.AVI file into VCD with the subtitles added (with WINAVI help) and burn it. The problem is that a lot of quality is lost during the process.
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VCD specs only allow for hard encoded subs. No reason why you need to convert to AVI though. Just go DAT/mpg-->mpg, re-author and burn.
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I'm sorry, but it seems I can't figure out the second part. How can I convert the *.DAT file to *.mpg? Should I just rename the *.DAT extension to *.mpg or should I use a software for that? How can I create a VCD with subtitles from the *.mpg file? I only know how to do that with *.AVI files.
Renaming will give you an mpg with a riff/cdxa header, which may be ok. VCDGear, ISOBuster, etc. can convert to a proper mpg.
Converting an mpg shouldn't really be much different from an AVI. I would frameserve the mpg via AVISynth, using textsub or VobSub to render the subs. Once the video is encoded, multiplex with the original audio, author and burn. No point re-encoding the audio.