If I could add my opinion on this.
As stated above mkv2vob generally just remuxes the mkv into a vob container. It only recodes when an "illegal" level is present or if subtitles are needed.
It would be very useful if PS3 Media Server had an option to remux to vob "on the fly" for those mkv files that meet the level requirements and when no subs are needed. This would reduce needed CPU and ensure perfect quality - I have to run with the "crazy" mencoder setting and with h264 loop turned off to get a result where I can't tell the difference between the transcoded MPEG and the original AVC. With 1080 videos this takes almost all my E6600 cpu power, with some stuttering on very complex scenes. If it was just a remux I would not have this problem. (FYI I'm using gigabit Ethernet, not wireless).
So despite all the advantages of recoding to MPEG, the option of just remuxing would be most welcome.
Oh and by the way.. PMS makes TVersity suck pants - well done!
