As for the subtitle issue:
I grew up in a country, where you have ONLY subtitles (there are quite a lot of those! ), and though I couldn't read till the age of 5, I remember watching all Knight Rider episodes when I was 3 and 4 and loving them.
When I got older, I got accustomed to reading subtitles. If you want to watch any film, you just have to. 
And believe me, very few kids have problems with it.