1) Rip the DVD with DVDDecrypter in IFO mode.
2) Create a index file with DDMPGDec or what's it's name
3) Create the AviSynth script in ANY text editor or let GordianKnot to create the script for you
4) To the script you must add the "subtitle" lines from the sample scripts posted above
5) OPen the script with ANY mpeg encoder (CCE, TMPGEnc, QuEnc, HC...)
Easy.