You need to latest update.
Did you convert .mkv to .vob?
If you did, then there is a better way of doing it.
.VOB loses it's ability for multi-channel sounds (DolbyDigital 5.1 and DTS).
Use this tool to convert .mkv to .mt2s
Besure to select .mts2 and not .ts in the middle of the screen.
It will take approximately 2 to 3 min depending on video file size.
After you've converted, select and drag both .mt2s and .meta file to the folder you want to TVersity to share.
After you've selected the folder (I use My Video) in TVersity, start server, and it should show up in your PS3, with all sub, audio (DD or DTS), and video intact without loss of quality.