Have any of you tried using a WD media player?
This device you can plug a hard drive into it (or a thumb drive). When you play the video file, you can opt to turn on the .srt file as well (provided that both files are named the same way). All of my movies are in digital format so I just put them on a hard drive and put the corresponding subtitle files with them. Never had any problems with it.
The newer WD media players have networking capability, and the newest one has the HDMI capability. Its a pretty nifty little piece of technology. My father came across it because the rest of the family were watching movies streamed through the xbox 360, and it didn't play subtitle files unless you had them trans-coded before playing... It was a bigger hassle than we wanted to deal with.