PS3 is a good media player plaque by a few serious problem.

The biggest problem with PS3 as a media player is that it does not support NTFS. PS3 can only read drive in fat32 format and that means you cannot have 1 big large HD movie file, but have to split to multiple part.

PS3 cannot play HD mkv files directly, but you can remux it using mkv2vob to either a ts or vob files which the PS3 can then play. That is how I use to play my HD movies but have long given up the remuxing process....too mafan.

The other way is keep the mkv in the PC and using a media server like PS3mediaserver to stream the movies to your PS3. Problem with this is that you need to keep the PC on and lag becomes an issue for high bit rate movies.

Best is get a standalone media player. I am currently using the WDTV Live. My friend got a unit of WDTV(1st gen) which he hardly use so he wants to sell at RM250.