MPEG.Now encoding renders incompatible mpg

[rig514]

My video is in .m2t format. After cutting a few clips and adding subtitles, I rendered it using video file HDV and as MPEG. The result video .m2t is readable by WM player and other players but loop when I input it to popular Mpeg Steamclip and gives errors when I load it in to Mpeg2 Virtual Dub.
I tried with and without "smart rendering" and it gave the same result. I tried to save as .MPEG and not .m2t and I go the same problem.

I re-encoded the same way but WITHOUT adding subtitles, and the result is OK and load properly in both programs. I guess there is no rendering as my edit consists only of cuttina few clips with no specail effects.

Is there a problem of compatibility in Ulead encoder MPEG.NOW rendering that I should be aware of?
Thanks