I've been using Connect360, but there seems to be a limitation on how many files it will show. I have to constantly move them around so there is no more than five, otherwise it seems to pick and choose which I can stream.
I've been messing around with PS3 Media Server as it also works for the 360. It seems to have more options and doesn't have limitations on the number of files in the folder. However, it says it can transcode files on the fly so I can watch a mkv without converting it with Handbrake first, but that doesn't seem to be the case. I could quite possibly being doing something wrong.
Are there any other recommendations out there? The easier the better. Being able to stream a movie to the living room is much better than watching it on my laptop screen.