PS3 Video 9
“John Smith” sent this link in. It’s software to convert video into a format that your PS3 will understand. And it’s free!
PS3 Video 9 is a free video conversion application developed by Red Kawa. It allows you to convert your computer video files (like avi, divx, mpeg, etc.) into the specific video formats that are playable on the PlayStation 3.
PS3 Video 9 can also be combined with Videora, another software application, and together they can let you automatically download and convert video for your PlayStation 3 using BitTorrent and RSS technology.
They do accept donations, though.