The awesome bit of kit that is the playstation 3 plays some avi files, div x files, mp4 files and mpeg files. Easiest thing to do is buy a 1 or 2 terrabyte external hard drive, copy your stuff onto it, plug into the PS3 and watch. I only have a 500 gig drive which is full, and a 320 gig drive in the ps3 which has 129 left. I never stream anything, i always copy it to the hard drive.