I was having terrible trouble with getting the PS3 to play video smoothly from Mediatomb. It'd pause, sound would cut out, etc etc.
What I've found is that the transport container makes a huge difference. I was using AVI or MP4 containers, and that what was giving me the problems.
What does work is mpeg2 TS containers, with h264 video and AV3 audio.
I hope this helps someone else.
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