The solution without going into Terminal commands is simply to replace the ffmeg unix executable within the new PS3 Media Server app.
You need to D/Load V1.40 of PS3MS and V1.50, and head into Finder and locate where they have been saved. (V1.40 will likely need to be renamed)
1) Right click on V1.40 of the .app and select Show Package Contents.
2) Now drill down through the directories from the window that opens:
Open: Contents / Resources / Java / osx
3) right click on ffmpeg and select Copy "ffmpeg"
4) leave this window open.
5) Now right click on V1.50 of the PS3MS .app and again select Show Pack Contents:
6) Drill down through the directories again till we get to "osx"
7) Right click and select Paste Item, select replace from the popup and We are done.
For clarification the V1.40 ffmpeg is smaller than the once it replaces.
V1.50 PS3MS now works on my OSX 10.6.8 Snow Leopard.
