I have the same problem with version 1.04, PS3 sees my file MP4 as Mpeg1. However, when I go back to version 1.03, the very same file is seen by PS3 as AVC and the playback is working.
I don't want to stay with 1.03 because the auto-updater kept poping up all the time.
I am new to PMS and I found this software is absolutely fantastic.
Could it be a configuration setup that I missed? Please advise. Thanks.
-- UPDATE --
This problem is now corrected in version 1.10.1 which I just tried this evening.