Yup, but my LCD TV is only 42" i guess a 720p movie would be enough and i guess it would not exceed at least 4GB of size. Correct me if i'm wrong. Coz i read that FAT32 can only accomodate a maximum file size of 4gb.
I've tried several ways to watch/transfer HD movies from my PC to my PS3.
(1) VIA EXTERNAL HDD (google mkv2vob)
If your file is greater than 4GB, the mkv2vob program will automatically split the file into a size that FAT32 can accomodate. So you'll most likely have 2 parts for 1 movie. As soon as you've loaded the 2 parts onto the PS3 harddrive, or via HDD, the PS3 has a feature that can automatically play the next video file. You can find it under the PS3 settings.
Just ensure that the filenames are similar so that when placed in a directory, they are sorted one after the other, example: "Movie_part1" and "Movie_part2". After the first video ends, the next one plays automatically. The viewing experience will be disrupted by a little under 1 second, as the PS3 moves on to the "Movie_part2" file.
I found this option a lot more palatable than streaming the whole movie via WIFI from my laptop, as there is no stuttering since the whole movie is now on the PS3 HDD.
(2) COPY FILE FROM PC TO PS3 VIA WIFI
If you don't want to split the file into 2, and just can't stand the one second delay from option 1, the other option is to copy the whole movie file from your PC to the PS3 via WIFI. Use this program:
http://www.rejetto.com/hfs/?f=dlYou can share your PC movie file via the internet. Just go to the PS3 internet browser and input the IP/web address that shows when you run the HFS program. Copy the file to the PS3 HDD. It will take about 1.5 - 2 hours to transfer a 4GB file to the PS3. I just normally leave this program on overnight, as the transfer takes too long for my taste.
(3) STREAM VIA WIFI (google PS3 mediaserver)
Tried this several times but I have to lower the HD movie resolution so that the movie can stream without any stuttering. And I already have a Core 2 Duo CPU. Note that the movies I play are usually 720p with 4GB sizes and up. I have never, ever, been able to stream a 4GB and up file at the best possible resolution without any stuttering. You can tinker with the settings to see what works on your home network.
You also need to have your PC turned on and WIFI or router on as well. So imagine all the electronics turned on: PS3, TV, WIFI, PC, Home Theater, etc. when using this option.
Among the 3 options I've tried, the option I use most often is just to split the file in order to be accomodated by FAT32. Transfer via USB is fast even for 4GB up file. The only downside is that there is short lag between the time file#1 stops and the time file#2 plays, which is just under 1 second I think. If you already have videos stored on your PS3, try the automatic play feature and see if the lag between videos is acceptable to you.
Hope this helps. Thanks.