the best one is avi. I'm kind of sure that mkv works but I'm not 100% I think I've played that file format before or maybe I'm wrong. But avi works perfectly. And blue ray format for blue ray movies too
You can connect a flash drive or a USB hard drive into the USB ports on the PS3 and you can copy the files over like that. I know that FAT32 works. You may need to press Triangle when you have the drive highlighted, then choose "Display All" in order to see the files and folders.
Also, I have lots of AVI movies and TV shows that I watch on my PS3 all the time, directly off my flash drive. They are pretty much all .AVI files, mostly Xvid I think, and maybe a few are .MPEG files but I'm not sure if they are Xvid or whatever. I haven't had any problems playing any of them.
And I have heard (but cannot confirm firsthand) that MKV does NOT work, unless you're running Linux on the PS3. However, you should be able to watch them if you stream them to the PS3 using PS3MediaServer (or tversity), because your PC is what decodes the video and just streams it to the Playstation.
You can also play them over the server with Windows Media Center or whatever. That's how I do it. Though make sure you're using a wired internet connection or it may lag a bit/take a while to buffer. At least... mine does...
But yeah, use a flash drive to put it directly on the hard drive. Or I'm sure you could take the hard drive out and put it in your computer. XD
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