Regarding the DVD vob playback being out of sync, I kind of found a way around it. Here are the steps
1. Start PSM.
2. Go to Transcode Settings > Common Transcode Settings > Audio Settings > Uncheck "Keep AC-3 tracks (no re-encode, may cause choppy sound and A/V sync issues in MEncoder) (AviSynth no supported)" check box.
3. Change the value of "AC-3 re-encoding audio bitrate (in Kbps)" to 384.
4. Restart PSM, and maybe your PS3 too.
This seems to work me over wireless. However it's not perfect, as there is some stuttering which is noticeable during playback. This could be my computer is not powerful enough or that its because of the wireless network, not sure.
If anyone has other solutions, it would be great to hear from you.