Don't know if anyone is still perusing this thread, but I am now getting the OPPOSITE issue; I did what you said Ady and used the "split and cut" feature of TSMUXER. I saved a 10 minute segment onto a thumb drive and the video plays on the PS3 but there is no sound. Is there a setting on TSMUXER I need to reset or do I need to remux the entire MKV file?

Update: this is REALLY making me pull my hair out. I downloaded a TS file of MOTEL HELL at 1080i over at Cinemageddon, used TXmuxer to create a blu-ray disc (with the 2 file folders), burned it onto DVD-5 using IMGBURN and wala! It worked! Plays great!

So... I took some MKV files (of HOWARD THE DUCK and ALIEN), used TXmuxer to convert them to TS files (with 4.1 setting implemented), converted them into blu-ray discs, burned the folders onto DVD-9s with IMGBURN and the PS3 says:

Cannot play video

Why will it convert one TS file perfectly fine and not the others?!?!