SciFi said:

I don't have photoshop. I have Paintshop Pro 7, GIMP and Inkscape.

I didn't realise the MKV actually has subs separate, but it does explain why there is no degradation like an FLV.
I've been reading up and sorta tracking MKV since I first heard about it back in '05 or so. Groups started using it and I wanted to know how the hell I was supposed to play it back. Wasn't until like a year or so later when I found the CCCP (and MKV's official decoder was switched to the CCCP also).

But yeah. MKV's are generally soft-subbed. Unless you see animated effects for the subs: those are hardsubbed (like the karaoke effects in OP/EDs). Don't forget MKV file can afford a much higher bitrate than FLV files too.

I've been getting a ton of Corel spam trying to get me to buy PSP: current offer is PSP X3 for $60 ($40 discount) good until July 19th. If you've been wanting a fairly cheap upgrade...