I've made a very small test project that I can share, and which will illustrate the problem:
First, I made a very simple subtitle file consisting of only one item:
1
00:00:01,000 --> 00:00:09,000
Testing is <i>really</i> fun!
This is the <i>second</i> line!
Then, I read that .srt-file into Subtitle Edit, and saved it as D-cinema SMPTE 2010. This is the result:
<?xml version="1.0" encoding="UTF-8"?>
<dcst:SubtitleReel xmlns:dcst="
http://www.smpte-ra.org/schemas/428-7/2010/DCST" xmlns:xs="
http://www.w3.org/2001/XMLSchema">
<dcst:Id>urn:uuid:8cf3bad5-812c-4371-a825-67cf9ba79db6</dcst:Id>
<dcst:ContentTitleText>Test film</dcst:ContentTitleText>
<dcst:AnnotationText>This is a subtitle file</dcst:AnnotationText>
<dcst:IssueDate>2016-08-29T10:42:26.000-00:00</dcst:IssueDate>
<dcst:ReelNumber>1</dcst:ReelNumber>
<dcst:Language>en</dcst:Language>
<dcst:EditRate>24 1</dcst:EditRate>
<dcst:TimeCodeRate>24</dcst:TimeCodeRate>
<dcst:StartTime>00:00:00:00</dcst:StartTime>
<dcst:LoadFont ID="Arial Rounded MT">urn:uuid:3dec6dc0-39d0-498d-97d0-928d2eb78391</dcst:LoadFont>
<dcst:SubtitleList>
<dcst:Font ID="Arial Rounded MT" Size="35" Weight="normal" Color="FFFFFFFF" Effect="border" EffectColor="FF000000">
<dcst:Subtitle SpotNumber="1" FadeUpTime="00:00:00:00" FadeDownTime="00:00:00:00" TimeIn="00:00:01:00" TimeOut="00:00:09:00">
<dcst:Text Vposition="15" Valign="bottom" Halign="center" Direction="ltr">Testing is <dcst:Font Italic="yes">really</dcst:Font> fun!</dcst:Text>
<dcst:Text Vposition="10" Valign="bottom" Halign="center" Direction="ltr">This is the <dcst:Font Italic="yes">second</dcst:Font> line!</dcst:Text>
</dcst:Subtitle>
</dcst:Font>
</dcst:SubtitleList>
</dcst:SubtitleReel>
I now made a very simple project in DOM, only overlaying this single subtitle on a still image (some colour bars). It looks absolutely OK in the preview. I UNchecked the "Burn Subtitles into Image" option to get a DCP with soft subtitles.
Playing back the DCP in Easy DCP Player gives the following result:
Do you need any more information, Carl?