mkv2vob is the program to use if you want to convert mkv files to Ps3 compatable file types. It lets you split the processed file if needed. It also only messes with file headers so it means that the processing takes very little time.
Just to be clear, PS3media server will work fine on its own to stream all MKV (including SD+1080p+720p) files from PC to PS3.
Also media convertors will work fine without using PS3media server so not sure what this comment above in bold was supposed to mean?
Converting is time consuming and can cause issues with sound being out of sinc and other problems sometimes. I prefer MKV files anyway,They are the most common HD format available, I like to keep all my collection to one format!
MPEG2 files have no size limit. Audio should be AC3 or LPCM.
M2TS files have no size limit. You can stream anything that's MPG2 or AVC. VC1 doesn't work. Audio: AC3 and LPCM works. TrueHD,DTS doesn't work.
So convert your MKV files to MPEG2 (pavtube.com/guide/convert-mkv-dts-to-ps3.html). If you have Blu-Ray Disc, rip blu ray movies to M2TS.