DIvx Codec Problem / DIvXI Media & Subtitler/ Short Video in AVI (XviD) Format

I have a short video in AVI (XviD) format. I downloaded DivXland Media Subtitler to create subtitles.

I  also downloaded the required component VirtualDub and put it in this folder:

C:\Documents and Settings\Firefly2\My Documents\Firefly active folders as of August 2008\Website\Kazan movie\Virtual Dub\

I was able to create subtitles in a text file, and as long as I have the movie and the text file open in the DivXLand program, I can watch the film with subtitles on my computer. However, I need to permanently embed the subtitles into the film so that I can make copies, etc.
 
When I tried to embed subtitles from the DivXland Media Subtitler, it asked for the following info:

Output resolution:

Use original

Output video file name:

C:\Documents and Settings\Firefly2\My Documents\Firefly active folders as of August 2008\Website\Kazan movie\Kazan.VIDEO_TS\copy.Kazan video 2007[sub].avi

 
When I clicked "next" (with the folder "VirtualDub-1.6.14[1]" selected), I got the message "VirtualDub's subtitle filter not found, the following file is missing: C:\Documents and Settings\Firefly2\My Documents\Firefly active folders as of August 2008\Website\Kazan movie\VirtualDub-1.6.14[1]\plugins\subtitler.vdf. Do you want to download the subtitler filter now from DivXLand.org?"

 
When I hit "yes," it took me to http://www.divxland.org/software.php#codecs.  I scrolled down to VirtualDub Subtitler filter, but there wasn't a download icon for this item; rather, there was an icon that took me to this website: http://www.virtualdub.org/virtualdub_filters.  I didn't know what filter to select from this page; over the past few weeks I've tried several. This time I selected "Download subtitler-2 3.zip from virtualdub.org." This created a folder titled "subtitler-2_3" that contained the following files: COPYING; gray.avi; Subtitler.vdf; demo.ssa; and readme.txt."

 The readme.txt said "Copy subtitler.vdf into the PLUGINS\ directory in the VirtualDub program directory.  The filter will then automatically load when the main program starts."

 I did as directed, but then when I tried to embed it told me "The XviD encoder DLL could not be found. Do you want to download the XviD codec now from DivXLand.org?"

 When I hit yes, it took me to this site: http://www.divxland.org/software.php#codecs. There was no download button for "DivX Codec, the latest DivX video codec version," so I clicked on the icon that took me to this website: http://www.divx.com/en/win.

 I clicked to install DivX 7 for windows.  It let me select what components to install, so I just clicked on the codec.  When I went back and tried to embed the subtitles, I got the same message: "The XviD encoder DLL could not be found. Do you want to download the XviD codec now from DivXLand.org?"

 So, I installed all components of DivX 7 for windows: DivX Coec, which also included DivX Converter and DivX Player; and DivX Plus DirectShow Filters, which also included DivX Web Player. This time I saved them in C:\Program Files\DivX.

When I tried to embed subtitles, I STILL got the same message: "The XviD encoder DLL could not be found. Do you want to download the XviD codec now from DivXLand.org?"

So then I copied the entire DivX folder from the C:\Program Files\DivX folder to the folder C:\Documents and Settings\Firefly2\My Documents\Firefly active folders as of August 2008\Website\Kazan movie\VirtualDub-1.6.14[1].

 When I tried to embed subtitles, I STILL got the same message: "The XviD encoder DLL could not be found. Do you want to download the XviD codec now from DivXLand.org?"

 My next attempt was to embed the titles from the VirtualDub 1.6.14 application. The instructions from readme.txt continue: "To use it, go to Video > Filters and add the "subtitler" filter.  You'll then be able to select a script filename and optionally toggle text

antialiasing.  Subtitler accepts Sub Station Alpha V2.x and V4.x scripts.  Text is then applied to the outgoing AVI according to the script."

 So, I ran VirtualDub.exe and followed the above directions. After this, I clicked on file --> open video file, and clicked on copy.Kazan video 2007.avi.  Here is the message I received: "MPEG Import Filter: invalid pack at position 3: marker bit not set; possibly MPEG-2 stream."  I have no idea what to do at this point.

Again, thanks for any suggestions you can offer!