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"are you just converting the source to a lossless AVI THEN filtering?"
No... How did you get that impression?! Please check the chart again.
"Your workraw should be your lossless pass. Apply all filtering, karaoke, and typsetting at that point."
Waste of time, mostly, if you apply filters and everything WITH subs - which are prone to errors, always, what happens when you need to fix a typo? You need to re-encode it - ALL OF IT - filtering included... Also, you don't get the typesetting/kara/translation instantly, so you waste time waiting, while you could already have started making a loseless pass which is filtered and all that.
Edit:
"l33tmeatwad" - if you still don't see it, please cut/paste the part which you think is "bad".
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