Avi,

I'm using also TVersity to stream my DVD collection from the same PC as the FLACs & MP3s to the PS3 in my HT room. (Whew, almost as many acronyms as one of my work emails.)

Once it's set up, it works very nicely. It can take just about any audio or video format and convert it on the fly to something that plays nicely with the PS3, no questions asked.

HOWEVER, I only recommend this solution if you are comfortable in installing separate CODECs and such. I took me several evenings of spare time, a lot of reading the TVersity forum and several nerve soothing beers to get it all working properly. Now that it is working, it's golden though.

One big thing to remember is that whatever streaming software you use, you have to store your DVD sized movies on an NTFS formatted hard drive. FAT formatted drives have a 4GB file size limit. Almost all external hard drives are FAT drives so this applies even if you directly hook up an external drive to a PS3. The other option is to compress your movies to less than 4GB, then it is not an issue but you lose some video quality = to the amount of compression you have to do.

With great power comes Awesome irresponsibility.