The PC I use as a media server is AMD Sempron 2800 (2GHz) and has 1 GB of RAM. This is probably the bottleneck in my setup for streaming 720p films. I have an ethernet 100Mbits connection. All wired.
I have tried various settings on the PS3 Media Server, but when streaming HD content the bandwith seems to peek a lot. I have my options set to Best Quality and the bandwith limit to 35Mbits/s. When I play the movie on my PS3 it will stutter, when I press select I see the video data is going well over 80Mbits/s.
So it appears to me that the option is being ignored by PS3 MEdia Server. (v1.04)
I have tried MEncoder and Avisynth/MEncoder both. The problem occurs with both options.
Edit: I thought maybe the CPU was causing it, so I set the quality to low for low-end CPU, but stuttering still occurs. Even though the video bandwith stays low.