Video Studio 11 and .srt subtitles markups

[rig514]

1 I have a .srt subtitle file to merge with the m2t video that I captured. It works very well except that Ulead does not recognize the special markup such as <i> or <b> that are present in this file.
I have used Convertxdvd to merge subtitles with video and it deal properly with these markups. Any chance this is corrected in VideoStudio

2 How can i extract the subtitles ONLY from a dvd to use merge later with another captured video, and which format would it have (utf?)
thanks