Hi –
Just adding another option that I’ve been using for a while now with Matroska (MKV) files and Sony Vegas.
MKV2VOB is a freeware program that takes MKV files and converts them to Blu-Ray M2TS files (or others) for playback on a PlayStation 3. The M2TS files it produces are of exceptional quality, and it can convert an MKV with DTS audio to AC3 as well.
I’m currently running Vegas 9.0a (Build 703, 64-Bit) but have used this same method with Vegas 8/9/32&64-bit editions.
Anyway – my first post here, and this is a real gem of a program. Definitely worth passing along…
Best regards…