I have no idea of the file containers or codecs that the PS3 supports as I don't own one.
MPG
-MPEG-1 (MPEG Audio Layer 2) (.MPG)
-MPEG-2 PS (MPEG2 Audio Layer 2, AAC LC, AC3(Dolby Digital), LPCM) (.MPG)
-MPEG-2 TS (MPEG2 Audio Layer 2) (.MPG)
-MPEG-4 Part3 (MPEG-4 AAC Low Complexity (unprotected)) (.MP4)
-MPEG-4 Part2 (MPEG-4 SP; MPEG-4 ASP) (.MP4)
-MPEG-4 DivX (in AVI) (.AVI)
-MPEG-4 H.264 (.MP4 / .M4V)
-MPEG-4 AVC (.MP4)
DivX (.AVI / MPG)
XviD (.AVI / .MPG)
AVI (.AVI)
Motion JPEG
-Motion JPEG (Linear PCM)
-Motion JPEG (μ-Law)
VC-1 (.WMV)
AVCHD (.m2ts / .mts )
If the PS3 is going to handle the media, Id hard wire through a gigabyte network to ensure the best playback (since the PS3 has a 10/1000 adapter).
Note - The DivX, XviD & VC-1 (.WMV) only work if you're on v2.10 or more.