How to add permanent subtitles to AVI movie files

This guide is to add PERMANENT subtitles to AVI. After you complete the process, unless you still have the original AVI file, there is no going back.
Feel free to ask questions.
You have to convert an .srt subtitle to an .ssa subtitle because VirtualDub can only read .ssa.

Problem "Couldn't locate decompressor for format 'XVID' (unknown)
VirtualDub requires a Video For Windows (VFW) compatible codec" solution here: http://www.xvidmovies.com/codec/

The vdf format subtitler is needed to ADD the subtitles, it doesn't mean the subtitles are in vdf format, they need to be in ssa format because VirtualDub only reads ssa.