I think custom colors always can work.
AVIAddXSubs logic expects that always only the first 4 colors are used in the palette.
Custom colors are always 4, compatible with XSUB subtitles specifications. So they have to work. In readme.htm is a section describing what to do with idx/sub subtitles.
Let me know if you can get a better result this way.
You can go to AVIAddXSubs site and send me a message so I provide you an email to send me this idx/sub to have a look. Or you can download it somewhere so i get it from there. (rapidshare etc)
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