Problem with displaying subtitles in iTunes - videodrive 2.7.05, mode 3 + 2 copies of file created

Hello. I am experiencing 2 issues. My setup is:

OSX 10.8.3
VideoDrive 2.7.05
i have perian 1.2.3 installed with "load external subtitles selected"

I have "videoa.mkv" and "videoa.srt" in one folder;
I open Videodrive, select mode 3: copy videos in a compatible container and drag the video and process it this mode;
1st issue: video drive creates a mov file inside "movies" folder (in iTunes library) + another in iTunesHome Videos. This duplicates file size since the two files are 2 exact copies!
2nd issue: subtitles do not display in iTunes, even after using "utilities" > "toggle subtitles" from VideoDrive interface… (it said "1 video subtitles toggled - no errors occurred). They display however in quicktime 7...

Thanks