ps3 media connect does everything for you. it plays almost all the main codecs including mkv and iso images. Also which is really nice if you have saround sound you can get DTS or dobly digital 7.1. I really like using it just because how easy it is to use.
All the filess that ps3 media player plays. I copy and pasted from there program
Ready to launch and play. No codec packs to install. No folder configuration and pre-parsing or this kind of annoying thing. All your folders are directly browsed by the PS3, there's an automatic refresh also.
Real-time video transcoding via MEncoder, tsMuxer or Avisynth
DVD ISOs images / VIDEO_TS Folder transcoder
OGG/FLAC/MPC/APE audio transcoding
Thumbnail generation for Videos
You can choose with a virtual folder system your audio/subtitle language on the PS3!
All formats PS3 natively supports: MP3/WMA, JPG/PNG/GIF/TIFF, and all kind of videos (AVI, MP4, TS, M2TS, MPEG) the ps3 is willing to play
Display camera RAWs thumbnails (Canon / Nikon, etc.)
ZIP/RAR files as browsable folders for pictures/audio files
Support for pictures based feeds, such as Flickr and Picasaweb
Internet TV / Web Radio support with VLC, MEncoder or MPlayer
Podcasts audio/ Video feeds support
Windows/Linux Only:
Lossless 5.1 PCM transcoding with DTS movies
Remux video and remux/reencode all audio tracks to AC3/PCM in real time with tsMuxer
FLAC 96kHz/24bits/5.1 support
By default, wmv, avi, mpg/ts/m2ts files are streamable, except in case of srt/sub file present with the same file name.
All videos can be transcoded, as each streamable video appears once into its folder, and once into
a special folder "#Transcoded#" present in each sub folder, with different options (audio/subtitles/other transcoding tools maybe)
so you can choose what's working best on ps3. For the audio part, only ogg, flac, mpc audio files and such can be transcoded:
You can however force or skip transcode for specific file extensions (check the transcode settings panel)