Can .avi and .srt be combined into one file?

Running XP Home SP3.
I am using Windows Media Player Classic and have discovered that a new series that I am downloading has separated the English subtitles into a .srt file midway through the series. I can get them to work fine when viewed on my computer, but I want to burn multiple episodes to DVD eventually.
1) As long as they have the same name and are in the same folder, will the subtitles be picked up during the DVD conversion process, or
2) is there something out there that will combine, or encode, the .srt and .avi into a single .avi file?
I do have Nero 9 available.

 

All the info needed is at this link:
http://www.afterdawn.com/guides/archive/adding_subs_to_avi.cfm

For future reference, all things video can usually be found at afterdawn.