It depends on the resolution and bitrate of your files and whether CABAC encoding has been used. I suppose your CPU could play ~2 MBit/s standard resolution files.
I think it is not possible to overlay subtitles on the already decoded video from CoreAVC. It would anyway result in too much copying overhead and possibly eliminate the benefit of CoreAVC altogether. If you have a slow computer use simple text subtitles with BSPlayer's internal rendered (draw to overlay = off).
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