The latest PS3 firmware now supports Xvid and WMV playback. Perfect for watching series 2 of heroes over the wireless media server application.

just updated to this yesterday. I have a USB 4GB Pen drive with 5 DIVX files on it. When I plug it in the PS3 doesn't recognise the device at all in the XMB it is formatted with FAT32 and my Upscaling Phillips DVD Player has no issues recognising it at all in fact watching something right now

It's about time. Next step is to get proper MKV support

I've been on doom9 forums over the last couple of days - people are on the verge of ripping their HD-DVDs and then playing them back on the PS3 with no transcoding involved (OK, you need to re-wrap it all, but that goes as fast as your hard disk, although considering movies are around 15GB, it still takes some time!)

Grounder0, does it not recognise the USB stick at all, or does it see it and then not see any of your files on it?