For thgse PS3 users, one of the best options is TsMuxer.....there is a version for Windows & Linux.....just convert the *.mkv to an *.m2ts. It's very fast since in this case TsMuxer just repackages the audio/video streams into a PS3 compatible m2ts container w/o any transcoding etc.
Not really.
Yes, it does its job, it copy streams from MKV to TS container but... that's it.
While on computer it will play flawlessly then PS3 and other AVC1/H264 players might have problem with it.
It is because AVC1 stream might have additional flags inside like "Level" flag.
I don't know current situation with PS3 media player but a year ago it had trouble with any AVC1/H264 stream with flag "Level" greater than "L3.1".
But scene coders is doing its job with full feature options on AVC1/H264 encoders ( "x264" is encoder not a format ) which will set "Level" flag to "L5.1".
Now, I personally HEX edited one TsMuxed file to change every "L5.1" to "L3.1" and that file played flawlessly with PS3 but not oryginal one with "L5.1" inside - PS3 assumes on base of this flag that streams is too high spec for its media player and drop it.
Solution?
1. use TsMuxer and HEX edit every file that not play thereafter, or
2. use MKV2VOB which is made specifically with PS3 in mind and is doing IT by themselves with no user knowledge or handwork -> http://www.mkv2vob.com/forumdisplay.php?fid=10