202w ago - Fixstars CodecSys CE-10 H.264 software encoder for PS3 was updated to v126.96.36.199 last month, which offers stunning H.264 encoding speeds for home users.
The previous update was quite some time ago, and the following features are now included in the latest version for the PlayStation 3 entertainment system:
CodecSys Version 188.8.131.52 Features:
Improved Picture Quality • Added support for Open GOP.
• Improved rate control method.
New Features • Added support for custom matrix setting.
• A different matrix can be applied per frame.
• FLAT16 and JVT will be selectable as preset.
• Revised the encode setting dialog.
• Optimized speed of color matrix conversion.
• Changed the communication module to native code.
Other • And more small resolves.
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While I can imagine that the PS3 would be relatively quick with doing HD conversion, I'm guessing my i7 920 (overclocked to 3.4 Ghz) with 6 GB triple channel RAM would still be faster for such tasks. Still, it's kinda cool to have the option to use the PS3 instead.
are you asking about ps3 mkv support, or for the encoder to output mkvs? because the latter is retarded. mkv is just a container, it doesn't matter what video you put in it. you could do this all on a POS computer after you have already reencoded whatever video you needed. use the codecsys' encoder, then output to h264 elementary stream + whatever audio you wanted, and remux into mkv. mkv remux takes no time at all.
According to the penguin icon count (6 for me), which represents the "cores" I'd say only 6 where used, unsure how much the actual encoding application really did use though. Would be greate if one could just disable the HV SPE at linux boot and use one more
Take a peek at the ps3 guide  for your YDL Version
It runs under Linux. Checked it out couple of weeks ago. They even have the "source" for the Linux part available. It's a minimalistic YDL distribution where everything is packed into the otheros.bld onto the ramfs like busybox. There is some cecom executable that is run after bootup. So for pals with YDL on there PS3 it might work if they just get the executable from: http://codecsys.fixstars.com/en/support/personal/source.html
Tested on my phat (80GB Model) v3.15 + WinXP encoding works quite ok got ~52FPS for 720x576 DVD resolution. It didn't setup the IP on first boot after install though, just reboot worked for me.
When trying to switch back to PS3 OS via the remote control feature I get some error on the flash write something so I have to do it via the power-button.
The Encoding Dialog window is all messed up for me, too large gaps between options so that some won't show as they are cut off.