

Maybe you guys can check their code as they are also an open source project? Somehow the problem is solved in MPC-HC so there must be a good solution for this. So I think the PGS subtitles are made for 1980 1080 px and VLC tries to squeezes the subtitle images to fit over the 1980800 px or so movie without the black bars. When I encoded a sample of the movie including the black bars, the problem did not occur. I think the problem has to do with the black bars above and below the movie being cropped. With this I mean: subtitles placed 'low' are placed too high and subtitles placed 'high' get placed too low, plus the font gets squeezed, the letters take less space vertically even though they are aligned well horizontally. When watching a movie with embedded/muxed-in PGS subtitles, the subtitles get 'squeezed'.
