Probably best you don't mention that sort of stuff here, the mods won't like it.
and to be fair, I'm no pro on the subject anyway.
I've just been learning by making it up, and working it out as I go along.
I have had mkv files converted and playing on the PS3, but it was far more hassle than it was worth.
Most of them come with DD5.1 or better sound.
I tried converting them with that Video9 program.
if you feed an mkv into that, that has an audio file with a bitrate of 640kbps (which seems to be a standard) then it won't work. (due to a bug I gather)
So you have to get another program, to demux the mkv file to seperate video and audio files.
reencode the audio as 2.0 and a lower bitrate
remux the files to one mkv file
then use video9 to convert this mkv file to a PS3 .mp4 file
Then, it's ready for playing.
I did it a few times, and that was enough for me.
As of this morning, the XMB still doesn't play the few .mkv files I have here (which are TV eps), but it is at least supporting 5.1 sound, which is something that I, and I'm sure others have been waiting for. Funny it just appeared without any kind of fanfare.
So the xmb is getting better, can now play xvid and divx files, even with 5.1 sound, including HD divx files. It can play HD MPEG2 files with 5.1 sound, as I just did with a certain Captain Mal Reynolds film

for .mkv, I use the PC

V1N.
EDIT: as for this newer version of TsRemux, that creates a valid bluray folder structure, that's interesting, and something I'll be playing with in the future.
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