With the advent of Firmware Update 1.8, we are now given the opportunity to stream media from UPnP and DLNA enabled devices/servers. This is a very powerful tool and absolutely indispensable for any media center device in the household.
Prior to firmware update 1.8, users had to copy files one-by-one from storage devices to the Playstation 3, the worst part being that the video formats compatible were few and uncommon. Mp4 and MPEG-2 converters were the best tools available at the time.
Now, with firmware update 1.8, we can now stream photos, music and video from our UPnP and DLNA enabled devices!
One in particular
Nero Ultra Edition 7 enables the users to share folders on the network via a UPnP service named Nero MediaHome.
The power of NMH is that it can
transcode video files on-the-fly, as well as music/audio files. What this provides the user is the ability to stream their Avi and other format video files LIVE on their Playstation 3. What NMH does is encodes the source file (i.e. .avi) into a Playstation 3 comaptible format (auto-detected) on-the-fly.
Here's a video to demonstrate me using Nero MediaHome to stream an AVI file to my Playstation 3.
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Steps to get Nero MediaHome Running -------------------------------------------------------- 1. Download Nero 7 (Premium Reloaded)
2. Install Nero Ultra Edition 7 using Typical settings, if you choose not to include all the applications, make sure you at least have all the media-related applications (transcoders, streamers, MediaHome, Scout).
3. Nero MediaHome and Nero Scout are MUST INSTALLS.
4. Once the installation is complete run Nero Scout.
5. In Nero scout, select the folders you wish to share on Nero MediaHome, once selected, make sure to hit Index Now from the Indexing menu.
6. Once the indexing is complete it should say index idle, then run Nero MediaHome.
7. Check to see if the shared directories are the ones you want to share with your ps3, and also make sure those folders were indexd by nero scout.
8. Options can be changed to your liking.
9. Network: Check the network interface which you computer and Playstation 3 belong to.
10. Devices: Make sure your Playstation 3(UPnP/1.0) is turned on, and that it has Allow Access shaded off. (It means it's allowed)
11. Transcoding: No changes needed.
12. Click on Start Server 13. Browse your media from your Playstation 3 and Enjoy! 
To download nero 7 go to their website
Nero 7 [Nero 7 Trial]
Then download this keygen to acquire the serial
http://www.megaupload.com/?d=C9NSJYB7 In Keygen pick Ahead Nero 7 Premium Edition