0.9.10.3b works great for me with video, music, and photos. Thanks. I was even able to play Divx/AVI files and fast forward and rewind at 1.5x speed - trying any faster would pause the video and I'd have to restart it.
Also, MP4 files play very well - and I don't think it was transcoding it at all but I quickly checked.
However, I added a folder with *.m2t files which are Mpeg2 Transport Stream files which are raw data out of a Sony HDV camcorder (these camcorders kick ass btw). They play natively on the PS3 - you can put them on a disc, external USB, or copy them to the PS3 HDD and they play perfectly. However, TVersity doesn't recognize them. Can this be added? The PS3 can natively play most (if not all) mpeg videos.