TVersity works great once you have installed the extra codecs that it needs. (check TVersity's download page)
I applaud TVersity for getting formats working on the 360 that should have worked straight from the factory. Microshaft was hyping how their box is a multimedia giant, and really it can barely play anything by itself... it needed the help of a special version of windows in order to work. Now Microshaft allowed the streaming of WMV content which is a step in the right direction and it allowed the fine TVersity folks to figure out how to stream transcoded content from a normal XP machine.
In fact TVersity is one of the only transcoders that supports Windows XP x64 bit edition and works without crashing. I have a x64 server with a ton of storage. I'm streaming movies of various formats, music, and pictures now very happily. I still think Microsoft screwed up and should have included better video/audio support for something they were saying was a multimedia machine... "multi" means many media... not one or two formats from one specific type of server.
I don't like using Macs myself, but I see why people do. I don't think they should be left out in the cold just because they don't pay homage to the almighty microshaft. People with versions of windows other than the multimedia edition should get love too.
I saw subtitle support in one of the programs/codecs that you install from the TVersity download page... make sure you have all those installed (ffdshow or something like that) In one of those programs you can configure subtitle support.