Subtitles are loaded, but not output to the video stream (VLC 2.0.1, Windows Server 2008 r2 sp1), how to fix?

Question

Subtitles

Subtitles are not displayed in VLC 2.0.1 under Windows Server 2008 r2 sp1, while the same bare installation of the player on a nearby machine with Windows 7 gives a workable option. The problem specifically is that the player loads subtitles, but does not display them. I run both in windowed mode and through the command line, the batch file is below. An internet search didn't turn up any results, so I'm posting here. Help me please. 10 days, silence, :'(

start /ABOVENORMAL vlc -v "!AMV.xspf" -I dummy --sout "#transcode{soverlay,deinterlace,vcodec=mp2v,vb=10000,width=1280,height=720,fps=25,acodec=mp3,ab=320,channels=2}:std{mux=ts,access=http,dst=:8888/stream.ts}"