if the video really smooth for u, try lowres=0 to restore the video resolution, lowres quite ugly lol.
sub display works for me though, im not sure coz the mplayer version u using is rc2, while im using the latest svn version.
copy the entire log, post here.
C:/Program Files/Mplayer/mplayer.exe -noquiet -nofs -sub-fuzziness 1 -identify -msglevel demux=6 -slave -vo directx -ao openal -zoom -nokeepaspect -priority abovenormal -framedrop -autosync 100 -ass -embeddedfonts -ass-color ffff0000 -ass-border-color 00000000 -subfont-autoscale 1 -subfont-text-scale 5 -subcp ISO-8859-1 -subpos 100 -contrast 0 -hue 0 -saturation 0 -cache 2000 -osdlevel 2 -vf-add ass -vf-add screenshot -channels 2 -lavdopts fast:skiploopfilter=all:lowres=1:skipframe=nonref C:/Users/user/Documents/Kanon - 24 h264.mkv
MPlayer dev-SVN-r25514-4.2.1-sjlj © 2000-2007 MPlayer Team
CPU: AMD Athlon 64 X2 Dual Core Processor 6000+ (Family: 15, Model: 67, Stepping: 3)
CPUflags: MMX: 1 MMX2: 1 3DNow: 1 3DNow2: 1 SSE: 1 SSE2: 1
Compiled for x86 CPU with extensions: MMX MMX2 3DNow 3DNowEx SSE SSE2
Setting process priority: abovenormal
117 audio & 238 video codecs
Playing C:/Users/user/Documents/Kanon - 24 h264.mkv.
Cache fill: 0.00% (0 bytes)
Checking for YUV4MPEG2
Checking for NuppelVideo
Checking for REAL
Checking for SMJPEG
[mkv] Found the head...
[mkv] + a segment...
[mkv] /---- [ parsing seek head ] ---------
[mkv] /---- [ parsing seek head ] ---------
[mkv] \---- [ parsing seek head ] ---------
[mkv] /---- [ parsing cues ] -----------
[mkv] \---- [ parsing cues ] -----------
[mkv] /---- [ parsing chapters ] ---------
[mkv] Chapter 0 from 00:00:00.000 to 00:00:00.000, Prologue
[mkv] Chapter 1 from 00:00:54.000 to 00:00:00.000, Opening
[mkv] Chapter 2 from 00:02:24.000 to 00:00:00.000, kanon 24: kanon at the end of the dream
[mkv] Chapter 3 from 00:22:10.000 to 00:00:00.000, Ending
[mkv] Chapter 4 from 00:23:40.100 to 00:00:00.000, Clannad Preview
[mkv] \---- [ parsing chapters ] ---------
[mkv] \---- [ parsing seek head ] ---------
[mkv] |+ segment information...
[mkv] | + timecode scale: 1000000
[mkv] | + duration: 1449.907s
[mkv] |+ segment tracks...
[mkv] | + a track...
[mkv] | + Track number: 1
[mkv] | + Track type: Video
[mkv] | + Default flag: 1
[mkv] | + Codec ID: V_MPEG4/ISO/AVC
[mkv] | + CodecPrivate, length 40
[mkv] | + Default duration: 41.708ms ( = 23.976 fps)
[mkv] | + Language: und
[mkv] | + Name: kanon 24: kanon at the end of the dream
[mkv] | + Video track
[mkv] | + Pixel width: 704
[mkv] | + Pixel height: 400
[mkv] | + Display width: 44
[mkv] | + Display height: 25
[mkv] | + a track...
[mkv] | + Track number: 2
[mkv] | + Track type: Audio
[mkv] | + Default flag: 1
[mkv] | + Codec ID: A_VORBIS
[mkv] | + CodecPrivate, length 4245
[mkv] | + Language: jpn
[mkv] | + Name: 2.0 Vorbis
[mkv] | + Audio track
[mkv] | + Sampling frequency: 48000.000000
[mkv] | + Channels: 2
[mkv] | + a track...
[mkv] | + Track number: 3
[mkv] | + Track type: Subtitle
[mkv] | + Default flag: 1
[mkv] | + Codec ID: S_TEXT/ASS
[mkv] | + CodecPrivate, length 1280
[mkv] | + Language: eng
[mkv] | + Name: ASS
[mkv] | + a track...
[mkv] | + Track number: 4
[mkv] | + Track type: Subtitle
[mkv] | + Default flag: 0
[mkv] | + Codec ID: S_TEXT/UTF8
[mkv] | + Language: eng
[mkv] | + Name: SRT
[mkv] /---- [ parsing attachments ] ---------
[mkv] | + an attachment...
[mkv] | + FileName: Quadrat-RegularEclipse.ttf
[mkv] | + FileMimeType: application/x-truetype-font
[mkv] | + FileData, length 45144
[mkv] Attachment: Quadrat-RegularEclipse.ttf, application/x-truetype-font, 45144 bytes
[mkv] | + an attachment...
[mkv] | + FileName: AVGARDNEclipse.ttf
[mkv] | + FileMimeType: application/x-truetype-font
[mkv] | + FileData, length 56924
[mkv] Attachment: AVGARDNEclipse.ttf, application/x-truetype-font, 56924 bytes
[mkv] \---- [ parsing attachments ] ---------
[mkv] |+ found cluster, headers are parsed completely

ID_VIDEO_ID=0
[mkv] Aspect: 1.760000
ID_VID_0_NAME=kanon 24: kanon at the end of the dream
[mkv] Track ID 1: video (V_MPEG4/ISO/AVC) "kanon 24: kanon at the end of the dream", -vid 0
ID_AUDIO_ID=0
ID_AID_0_NAME=2.0 Vorbis
ID_AID_0_LANG=jpn
[mkv] Track ID 2: audio (A_VORBIS) "2.0 Vorbis", -aid 0, -alang jpn
ID_SUBTITLE_ID=0
ID_SID_0_NAME=ASS
ID_SID_0_LANG=eng
[mkv] Track ID 3: subtitles (S_TEXT/ASS) "ASS", -sid 0, -slang eng
ID_SUBTITLE_ID=1
ID_SID_1_NAME=SRT
ID_SID_1_LANG=eng
[mkv] Track ID 4: subtitles (S_TEXT/UTF8) "SRT", -sid 1, -slang eng
[mkv] Will play video track 1.
Matroska file format detected.
VIDEO: [avc1] 704x400 24bpp 23.976 fps 0.0 kbps ( 0.0 kbyte/s)
ID_FILENAME=C:/Users/user/Documents/Kanon - 24 h264.mkv
ID_DEMUXER=mkv
ID_VIDEO_FORMAT=avc1
ID_VIDEO_BITRATE=0
ID_VIDEO_WIDTH=704
ID_VIDEO_HEIGHT=400
ID_VIDEO_FPS=23.976
ID_VIDEO_ASPECT=1.7600
ID_AUDIO_FORMAT=vrbs
ID_AUDIO_BITRATE=0
ID_AUDIO_RATE=48000
ID_AUDIO_NCH=2
ID_LENGTH=1449.91
Opening video filter: [screenshot]
Opening video filter: [ass]
[ass] Init
[ass] Updating font cache.
==========================================================================
Opening video decoder: [ffmpeg] FFmpeg's libavcodec codec family
Selected video codec: [ffh264] vfm: ffmpeg (FFmpeg H.264)
==========================================================================
ID_VIDEO_CODEC=ffh264
==========================================================================
Opening audio decoder: [ffmpeg] FFmpeg/libavcodec audio decoders
AUDIO: 48000 Hz, 2 ch, s16le, 0.0 kbit/0.00% (ratio: 0->192000)
ID_AUDIO_BITRATE=0
ID_AUDIO_RATE=48000
ID_AUDIO_NCH=2
Selected audio codec: [ffvorbis] afm: ffmpeg (FFmpeg Vorbis decoder)
==========================================================================
AO: [openal] 48000Hz 2ch s16le (2 bytes per sample)
ID_AUDIO_CODEC=ffvorbis
Starting playback...
VDec: vo config request - 704 x 400 (preferred colorspace: Planar YV12)
VDec: using Planar YV12 as output csp (no 0)
Movie-Aspect is 1.76:1 - prescaling to correct movie aspect.
ID_VIDEO_ASPECT=1.7600
[swscaler @ 0pc6d1b0]No accelerated colorspace conversion found
[swscaler @ 0pc6d1b0]SwScaler: using unscaled yuv420p -> rgb24 special converter
VO: [directx] 704x400 => 704x400 Planar YV12 [zoom]
ID_AUDIO_TRACK=0
VDec: vo config request - 704 x 400 (preferred colorspace: Unknown 0x0000)
VDec: using Planar YV12 as output csp (no 0)
Movie-Aspect is 1.76:1 - prescaling to correct movie aspect.
ID_VIDEO_ASPECT=1.7600
[swscaler @ 0pc6d1b0]No accelerated colorspace conversion found
VO: [directx] 704x400 => 704x400 Planar YV12 [zoom]