Is it posible that this post:
http://forum.bsplayer.com/bug-report...-reversed.html
can add an info on this post. If the hebrew subtitles were displayed on western script (like in this post - where this setting is not remebered) it's posible that this effect occurs. If I recall correctly, hebrew use rigth to left writing and the western script just reversed the words. So, if the same bug (reset to western script) occurs in the above mentioned post, it's posible to have the reported effect.
On the other hand, as I've reported, no such effect in here, using new engine, central european stay selected. Played a movie with no problems. I still believe that there is a writing permisions bug and not an engine bug.