The easiest way to watch movies from your computer to your PlayStation 3 is with a Flash Drive (memory stick) and your PS3's USB port. Here is a step by step guide to get your movie files from your PC to your PS3!
1. The first step is to make sure your movie files will work on PS3. Movie and video file formats supported by the PlayStation®3 computer entertainment system:
-MPEG-1 (MPEG Audio Layer 2)
-MPEG-2 PS (MPEG2 Audio Layer 2, AAC LC, AC3 (Dolby Digital), LPCM)
-MPEG-2 TS (MPEG2 Audio Layer 2) AVCHD (.m2ts / .mts)
-AVI, Motion JPEG (Linear PCM), Motion JPEG (u-Law)
-MP4 File Format
-H.264/MPEG-4 AVC High Profile (AAC LC)
-DivX and VC-1 (WMV)6 (Requires PlayStation 3 system software version 2.10 or higher.)
NOTE: Some files over 1GB may need to be cut in half (unsupported file error message). Any movie editing program should be able to do this, and just label files Part 1 and Part 2.
2. Once you have a movie that fits the criteria, simply drag it over to your USB memory device.
3. Unplug your storage device from your PC and plug it into your PS3.
4. Under the videos menu, you should see your USB device but do not press X to select it. Press Triangle, and a menu will pop up at the side. Select "Display All" and you should see your movie files. That's it!