Can this subtitler embed or merge subtitles with video and save as a new file?
Yes, the application can be used to embed the subtitles into the video and then export them to another format. According to program's description you can embed subtitles and then export the entire video to AVI format, but you also need VirtualDub for this process.
Access the official website to find additional info: http://www.divxland.org/en/media-subtitler/
Embed Screen:
