Basically, original player is not support Sub-titles
I've found some very interesting software such as Video Wallpaper.
It's proof, video and other graphic can be displayed at same time.
If genious development the new player can support sub title.
It will be great for everybody.
Because It will be used for watching movie and singing along.

Regards

It's been there for quite some time. Not sure about 2.0 support though.

http://www.tuaw.com/2008/04/28/muxo-...rt-for-iphone/