Update: I rolled back PMS to V 1.70.1 and Java to 22.214.171.124 and PSM now says it is connected to PS3, but it isn't showing up on my XMB. Yes I have Media Server enabled on PS3.
EDIT: Downgraded Java to 126.96.36.199 closed and reopened PMS and once again no renderers found. Also tried PMS 1.80.1 to no avail.
EDIT: Have tried different variations of Java/PMS, deleted config files after messing with all the settings, still doesn't work. Guess I'll just have to wait till there is an official fix released.
Here a report of my setup:
1. Intel Pentium 4 CPU 3.0 GHz 2GB RAM
2. Streaming to PS3, defaut settings
3. Network: Linksys WRT110 100mbps wired connection
4. Debug log http://pastebin.com/pCcsdPRh