OK, while the MKV does not work for me at all, I used the instructions for a PS3 to rip out only the movie and the main English track and burn a BluRay version of the movie for myself.
That BluRay plays perfectly, so I have no issues. :)
As a note, it plays smoothly on my 1080p 60Hz Panasonic projector (or as perfectly as it can, my eyes do not see any of the issues people say are caused by 60Hz).