I was wondering, when I stream let's say a 720p movie from my PC to my PS3, is the PC just streaming the file over to the PS3 and the PS3 plays it as it downloads it or is the PC playing the actual file and streaming the actual video/audio to the PS3?
If file is PS3 supported one and PS3Mediaserver does not do a transcoding then its basicly PC sending a byte stream to a network. PCU load is a minimal. But non supported codecs are transcoded at PC side to mpeg2 format then byte stream sent to a network. Transcoding is a sort of playback into a ram.