I spent a little more time looking into this, and it looked like "MediaServer.exe" was crashing. When I went to my Event Viewer (START > RUN > eventvwr.exe > Application Log), I saw this:
"Faulting application MediaServer.exe, version 0.0.0.0, faulting module ffdshow.ax, version 220.127.116.112, fault address 0x00022523."
I decided to uninstall FFDSHOW (google it) and reinstall it, but I was having the same problem. I then decided to run "regsvr32 ffdshow.ax" to register the application properly, and then everything was working fine again! (Oh, and at some point, I also went into START > RUN > Services.msc, and then edited the properties of the TVersityMediaServer service on the LOG ON AS... tab to run under THIS ACCOUNT, and selected a local administrator account.)
I can only seem to play off the copied links on ASX format, but that's good enough, I guess. Although it does seem to take a while to buffer, 30-45 seconds before hearing anything. Is this normal? What playback times do others experience?
Also, is there a way to see the Artist / Song Title in the corner while it is playing on the PS3?