It works on old versions, why it's not working on newer versions?
Also, subtitles within VOB is useless if you don't have a IFO file. It's because all players need this file for some informations about the subtitles (language, ID and other)
This is the reason to export subtitles in IDX/SUB file.
CloneDVD Mobile is doing what you said and I can't read the subtitle with any program!!!