First… great job on the latest PS3/4 client… But sorry to have some bad news…
I was trying to play a movie last night. It is an MKV container with h.264 video and AC35.1 audio. System was direct streaming both to PS4. However, playback started at the credits of the movie even though the playback counter started at 0 and was incrementing forward. Playback was very jumpy as well. I turned off direct stream and the system transcoded and the movie played fine
I played the file back on my Mac using VLC with no issues so I know it is not the file per say. Attached is the XML data for the movie