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unfortunately you are wrong. PS3 is very picky about what video it plays. Use the online help option and choose VIDEO-WHAT FILES CAN I PLAY
It only plays H264 format video encoded using the x264 codec with certain settings enabled. It took me WEEKS to figure out the settings to get a video to play.
It also states that it will play MPEG4 movies. This to me meant DIVX movies but it won;t even consider anything that does not have an MP4 extension and MP4 files encoded with DIVX or MPEG4 motion A or B... all of them anr not recognised.
It also lists it will play JPEG Motion video but this also I cannot get it to recognise. After 3 weeks of trying different settings with different codecs on different programs, ffmpeg is still the only thing that can encode a video to work on the PS3.
They said Handbrake could do it and even comes preset with a PS3 setting but Handbrake took 2.5 days to encode a single DVD into MP4 and the PS3 still didn't recognise it.
FFMPEG is the only option out there as far as my experience goes and on my system every video takes ages to convert so I suggest having a very powerful system for that....