I have a few DVDs that were ripped and encoded with H264 profile High level 4.0. The PS3 is connected to a 1080P television directly via a HDMI cable. If the audio was DD I used a MP4 container if the audio was DTS I used a MKV container. When I select any 480p file it takes a while to start playing and then no video appears on the screen just audio. If I force the video to re-encode to 720p with the playback video quality options it buffers while the server starts the transcode process and then plays just fine but my server is not very powerful so i would prefer not to do this.
Any file that is already 720p or greater will play no issues.
PMS Version # 0.9.15.1
PS App Version # 2.5.1