Hi, you are not giving us enough info about that file, so nobody knows what codec is in that .avi container like, H264 or divx or xvid or some crazy flash stuff.
The only tip I can give you is, get a up to date encoding program. I use XMedia Recode for trans/encoding, you only need to click on encode to PS3 and the prog will set everything up for you.
A good info should look like this:
General
Complete name : (GomTV Full HD) [MV].avi
Format : AVI
Format/Info : Audio Video Interleave
File size : 367 MiB
Duration : 5mn 0s
Overall bit rate : 10.3 Mbps
Writing application : GOM ENCODER (GAviWriter 1.0)
Video
ID : 0
Format : AVC
Format/Info : Advanced Video Codec
Format profile : Main L4.1
Format settings, CABAC : Yes
Format settings, ReFrames : 1 frame
Format settings, GOP : M=1, N=23
Codec ID : H264
Duration : 4mn 59s
Bit rate : 10 000 Kbps
Width : 1 920 pixels
Height : 1 080 pixels
Display aspect ratio : 16:9
Frame rate : 23.976 fps
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Bits/(Pixel*Frame) : 0.201
Stream size : 355 MiB (97%)
Writing library : x264 core 1632855468Jun 7 2011
Encoding settings : cabac=1 / ref=1 / deblock=1:0:0 / analyse=0x1:0x111 / me=hex / subme=5 / psy_rd=0.0:0.0 / mixed_ref=0 / me_range=16 / chroma_me=1 / trellis=0 / 8x8dct=0 / cqm=0 / deadzone=21,11 / chroma_qp_offset=0 / threads=6 / nr=0 / decimate=1 / mbaff=0 / bframes=0 / keyint=23 / keyint_min=1 / scenecut=40 / rc=abr / bitrate=10000 / ratetol=1.0 / qcomp=0.50 / qpmin=10 / qpmax=40 / qpstep=4 / ip_ratio=1.40 / aq=1:1.00
Audio
ID : 1
Format : MPEG Audio
Format version : Version 1
Format profile : Layer 3
Mode : Joint stereo
Codec ID : 55
Codec ID/Hint : MP3
Duration : 5mn 0s
Bit rate mode : Constant
Bit rate : 320 Kbps
Channel(s) : 2 channels
Sampling rate : 48.0 KHz
Compression mode : Lossy
Stream size : 11.5 MiB (3%)
Alignment : Aligned on interleaves
Interleave, duration : 24 ms (0.57 video frame)
Interleave, preload duration : 240 ms
Writing library : LAME3.98.4
glhf