Now the original blank window should say something like [##x##] Textsub [Subtitle file lcoation].
Click OK. Now play your output file. (The button at the right.) If all is well, you should have the subtitles show up!
If your video is too big, and only the input shows, go to View. You should have the option of Input video pane and Output video pane. You can disable the Input pane altogether, or choose to Swap input/output panes.
If you're happy, go to Video ->Compression, and choose a codec. I very very very strongly recommend you get Xvid at
Xvid.org: Downloads it's one of the best compressors around. Picture at

If you think you're ready, go to File ->Save as AVI and save it somewhere. It might take a while, so be ready.
When it's done, you're done, click to play it.
Congratulations! You have learned how to subtitle a video, as well as how to play and softsub and hardsub!
I really liked making this tutorial, and I hope it was clear and simple for you. I know I haven't covered karaoke scripts, but maybe I will if I learn and someone wants to know too.
I am done with the tutorial now! Please feel free to give feedback and questions, and I will try my best to resolve them!
SPECIAL NOTE: I just realized that special effects don't work with VirtualDub. I don't know why it's like that, but I have already posted in the forums of both creators and will receive a reply soon.