I recently found out that I could stream HD video files to my PS3. If you have a file that is .m2ts, you can add it to your Tversity library and the PS3 will recognize it and play with no problems. However, often when you download a x264 movie it comes in the format .mkv which the PS3 does not support. Luckily there is a quick way to convert .mkv to .m2ts on PC:

1. Download tsMuxer made by SmartWare (freeware)
2. add your .mkv file to the Input Files area
3. choose M2TS muxing in the Output area
4. under General track options, set Change level to 4.0 if it defaults to a level higher then that
5. click the Start muxing button and it will create you a new .m2ts file that you can stream to your PS3

The program is surprisingly fast, it usually takes me 1-2 minutes to convert a 5GB video file.