I use Twonky as well. Unfortunately, there always seems to be a catch, but with that said, I've found the simplest solution to be to change the file extension from vob to MPG. If you Google this, you'll see that in many cases this works just fine. This assumes you've done what Dean suggests and just ripped the actual movie file into a single VOB so you don't have the menus, extras, etc. to deal with.
Where this solution gets hung up is on anything other than stereo audio, which I do not believe can be contained within an mpg file.
The only way I have been able to get ripped 5.1 files to play on the PS3 is using H.264 encoding with an M4V file extension (via Handbrake). This would mean encoding every VOB you have to this format. Once done, it will play 6-channel discrete audio on the PS3.
Needless to say, it's a lot of work and just when you seem to have a solution, another little issue pops up (aspect ratio, image quality, take your pick) and you end up encoding again to fix it. Ultimately, I gave up on the idea and decided to wait until it's easier.
If anyone has a simple walkthrough that works 90+% of the time I'd be willing to consider trying again, but from what I've seen yet there is still a lot of trial and error required.
Jason
