The new DVDA manual states very clearly that the Playstation 3 will NOT support AVCHD / BluRay interactivity, and refers you to loading each stream file manually if you want to see the video. They specifically state that menus, chapters, subtitles, etc. are NOT supported. This is exactly what I found when trying out the new DVDA version 5 tonight, much to my disappointment.
No problem if you don't mind buying a $350 burner and $15 blank disks to send home movies to the family and friends. Exactly the way Sony wants you to..........
Once again, Sony pokes a finger directly in the eye of its customers and supporters. My Sony FX-1 $3500 camcorder and Vegas suite are the very last Sony products I will EVER purchase.
Larry