Instead of going through the a long drawn path you can use Avi ReComp.
This is the main window of Avi ReComp.
Click Open AVI and load the video file you want to hardcode subtitles into. Next press Save AVI and select the folder you want to save your final video file. Of course you can select the same directory. The output file will have a _arc extension. Be careful, you must leave the New AVI Size dropdown to its default value. This way you will avoid recompression and of course the whole procedure will be faster. If you change the size you will have quality loss.
Next go to the Additions tab and tick the Enable/disable Subtitles button. If your subtitles .srt file is in the same directory with the video file and has the same name tick Auto-load. Alternatively you can load it manually by pressing the Load subtitles button.
As you can see Avi ReComp has a few other options available such as crop/resize your video file, add black borders to it and even add a logo.
Now go to the Queue tab and press Add to queue. The video file will appear in the Job's list. Once you have added your current job you can go back to the beginning and add another video file. This is very useful in case you want to embed subtitles to multiple files all at once and unattended. Just hit Start and wait for the procedure to finish!