According to the latest version of PS3 Media Server (1.82) a new feature was added:
"Fixed 24-bit FLAC support with tsMuxeR (thanks, SubJunk)"
But I am having trouble figuring out how to access this feature. If I disable Audio High Fidelity, no audio tracks show up under the "Video" category on my PS3.
Is there some special tsMuxer audio engine that I have to download?