Video Converters for xbox compatible files

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I am looking for Video Converters/Transcoders that will turn .MKV files into either WMV, or .MP4

My Xbox only plays some .avi files, and a lot of the anime i get are in MKV format, which the xbox does NOT play. the only video files it will consistantly play (from either data CDs/DVDs, or flash drives) are WMV, and MP4.


I would like to find free converters.. or good cheap ones, i found Xilisoft, but it's a little steep for my budget at $55, and does not seem to transfer the subtitles over.

also, i would like to know how to Keep the Subtitles that come in the video, a lot of my anime is also Japanese, but i only speak english.

so.. to sum up,

1. Free and/or good Video file converter for mkv, wmv, mp4, (preferably also able to keep subtitles.)
2. learn how to put subtitles on a video file.
 
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