Of course, you need InstaCodecs installed and running in your machine to be able to follow this tutorial. So, if you don't, all you have to do to get it is to click on the “Download” button above and save the installer to any folder (e.g. Downloads folder or Desktop), once you have it, launch it and the InstallIQTM manager will take care of the setup process.

First of all, access the InstaCodecs's video decoder configuration dialog, to do so, go to Start → All programs → InstaCodecs → Video decoder configuration in your Windows Start menu. double-click the red InstaCodecs video icon in the System tray while playing a video. Alternatively you can double-click the red InstaCodecs video icon in the System tray while playing a video.

Before we continue I'd like to make a note: If you adjust these settings while playing back a video file, most changes will take effect immediately, the exceptions are codecs, output colorspaces, queue and some other adjustments that will need a restart of your video application to take effect.

In the InstaCodecs Video decoder configuration window go to the left panel, scroll it almost to its bottom and select “Subtitles”, the right panel should now look like this:

So, let's go through these settings:
The first option is “Search in”: InstaCodecs will attempt to find an external subtitle file automatically. Here you can specify a folder where it will search subtitles in. The default option is to search in the same folder the video is and it is noted by one period.
Click on the “...” button and an explorer like dialog will open where you can select the folder.

If you check the “Heuristic search” box, InstaCodecs will make it within the given directory, among supported subtitle files extensions, using the closest match by a certain algorithm and ignoring the extensions priority.
If you leave it unchecked InstaCodecs will search the given folder for subtitle files with identical name as the video file applying the order given by extension priority
“Extensions priority” is where you can specify the priority list of extensions only when heuristic search is disabled. If enabled it goes grayed out.

By selecting “File” you can specify external subtitles files in an explicit way. Again, click on the “...” button and an explorer like dialog will open where you can select the file from your folders.
Check “Watch for file changes” if you want changes made to the subtitles file to be detected on the fly.
Next are shown a list of all supported subtitle formats by checking their boxes you can enable them.

The next controls are self explained, you can adjust Delay, Speed, horizontal and vertical Position to enable a Letterbox and its alignment and Stereoscopic appearance.

As a final hint I can tell you that subtitles rendering quality can be improved by using RGB32 as output colorspace.
Final Words
To sum up, if you are having audio or video issues and you cannot play them back properly, search no more, InstaCodec is all you need to safely enjoy all your media files. Download InstaCodecs for free by clicking on the “Download Now” link below, not even a registration is required.