I'm not sure if everyone's aware of this or not but you can totally copy (via PS3 Media Server) a large file over to the PS3. For instance, I've got all the Bourne Trilogy on mine, all 8 gig + file sizes, and they look great. I'm definately going to upgrade the internal HD once the 1TB drives are small enough to fit in a PS3 so I can drop all my M2TS Blu-ray rips on the local drive.
I just bought the PS3 to replace my Apple TV which now resides in our bedroom. For $270 (got mine from Dell for 15% off with free next day delivery, love slickdeals.net) you really can't beat it. I agree with everyone about how the

TV has an much more intuitive UI but when I'm watching movies on my main rig it's quality that's important for me.
That being said I'm going to try this question in this forum since I can't seem to get a solid answer any where else. I've got a bunch of movies encoded with

TV preset in handbrake that wont play on my PS3. Is there a way to easily make these playable on both?? I've actually reencoded a couple in handbrake using the "-level 41" trick which seems to work for both so far. I'm also afraid I'm losing quaitly by doing this. If there's an easier more efficient way i'm all ... eyes.
Also, going forward with new encodes should I use the PS3 preset in handbrake which appears to work with the

TV or am I missing something here. Is the PS3 setting not as good as the Apple TV??