playing h264 and mkv with your ps3
if you guys are trying to play h264 or mkv files and you have a pc and a router you should look into PS3 Java Media Server.
install it on your pc, set the directories on your pc you want to access from your console and go to your ps3.
PS3 JMS will convert on the fly most packets, including mkv and can convert on the fly 1080 files on most dual core machines.
check out the full specs, but it also supports streaming internet radio through the playstation dash, very good program.
i use my ps3 for all media. games, movies, tv shows. i rip all my dvds straight to my hard drive and stream and i put my blu-ray discs in my player.
fyi, the ps3 does a great job at upsampling when running through hdmi, so standard def rips still look fantastic!
crazy people have more fun!