Hmm, you're right...CS3 doesn't offer Field 2. Encore 2.0 does offer both fields for closed captioning.
Closed captions being in Spanish wouldn't cause this problem. But the CC timecode beginning at 2:09 might, and the fact that it has colons instead of semi-colons separating hr/min/sec/frame may also be at issue.
Have you tried replacing timecode colons with semi-colons in the original scc file? Once you've done that, also try subtracting 2;09 from all timecodes, and see if that helps.