I'm having a similar (or maybe the same) issue with mp4's created with DVDfab.

My PS3 is connected HDMI to a Sony 40V3000 LCD. They sync with one-another and both run at 1080p by default - I could change that but why would I?

Anyway, I've been playing Xvid's so far and things work fine for the most part although I don't think the PS3 is upconverting the Xvids. The other day I decided to try DVDfab because there is a specific "mode" for outputting to PS3. It creates a mp4 file (h.264 + aac) and I noticed that the default resolution for the file is much higher than your typical Xvid.

My expectation was that this would be a better quality play on the PS3. Well, I get good audio but no video. I did 6 different movies and all are the same. Waiting 30 seconds, resetting, changing resolutions, etc don't correct things.

Anyone know what's wrong? I know I could just stick with Xvid but I think mp4 will be better if I can make them work.