Streaming videos in the AVI container using PS3 Media Server (PS3MS) using it's default settings will almost always result in stuttering, choppy video that will freeze for some apparent reason in the same spot making watching your videos impossible. These include low resolution XviD/DiVX and hi-res XviD-HD, MP4, DiVX-HD (basically anything in the AVI container). With some simple adjustments you can fix this issue when using MEncoder for your Video File Engine. Note that this has been tested on a Quad Core chip. However, as normal broadcast and DVD resolution AVI files skip along with the HD ones I don't see why this wouldn't work for slower machines. Basically, if you can watch transcoded x264 (MKV) then these settings should work for you.

1. Increase buffer to maximum of 600MB
2. Increase CPU cores to maximum supported
3. Decrease audio bitrate to 448 kbps

1. Select MEncoder and make sure it’s the default Video File Engine
2. Enable Enhanced multicore support for H264 HD content
3. Enable A/V sync alternative method
4. Enable Force framerate parsed from FFMpeg
5. Disable Switch to tsMuxer
6. Enable Skips loop filter deblock
THE PITT