These are the supported codecs your PS3 is able to read:

MPG
  -MPEG-1 (MPEG Audio Layer 2) (.MPG)
  -MPEG-2 PS (MPEG2 Audio Layer 2, AAC LC, AC3(Dolby Digital), LPCM) (.MPG)
  -MPEG-2 TS (MPEG2 Audio Layer 2) (.MPG)
  -MPEG-4 Part3 (MPEG-4 AAC Low Complexity (unprotected)) (.MP4)
  -MPEG-4 Part2 (MPEG-4 SP; MPEG-4 ASP) (.MP4)
  -MPEG-4 DivX (in AVI) (.AVI)
  -MPEG-4 H.264 (.MP4 / .M4V)
  -MPEG-4 AVC (.MP4)
DivX (.AVI / MPG)
XviD (.AVI / .MPG)
AVI (.AVI)
Motion JPEG
  -Motion JPEG (Linear PCM) 
  -Motion JPEG (μ-Law)
VC-1 (.WMV)
AVCHD （.m2ts / .mts )

Note - The DivX, XviD & VC-1 (.WMV) only work if you're on v2.10 or more.


Checking your video's codec: (Sent in by mick)
If you are unsure about what your video' codec is; Download GSpot. GSpot is a program which checks your video's codec. You don't even need to install anything, and it's very easy to use. How to use GSpot.


Converters:
If you video codec is non of the above, use a converter to change the compression to one that the PS3 is able to read. A good converter that I personally use is 3GP Converter. It is able to convert your videos to DivX, XviD or MPEG-4 H.264. But it's best for videos that are about 640x480 only.
It's also free and is able to convert videos for your iPod, PSP and Mobile Phone. The compression results are outstanding - I've tried programs that you had to pay for and the compression results where a bit worse than 3GP Converter's results.

Another good converter is Red Kawa's PS3 Video 9. It's able to convert video's over 640x480 (I think) and makes them compatable with the PS3. This program is also free. (More information coming soon).


Post any suggestions to make this topic better (more converters and helpful programs..etc) and please point out any mistakes. Still confused? Post a question!

Last edited by VuZuW (2008-01-19 18:19:22)