No, that doesn't work. It plays the files, but audio and video are way out of sync.
The AVISynth/FFMpeg option comes closest to working, but it still pauses every few seconds and gets out of sync easily. The AVISynth/Mencoder option seems to drop a lot of frames - the video gets pretty jerky.
The sad thing is that most of these TS files stream perfectly to the PS3 without any transcoding whatsoever. But a tiny handful fail on the PS3. There are no apparent differences between the ones that work and the ones that don't. They all play perfectly on the PC, and all show the same parameters when run through MediaInfo.
And none of them work well with any of the transcode options. Even with a Core2Quad CPU and wired gigabit connection.
Thanks for the suggestion, though. I've been fighting with this for a month now.