Thanks for the advice!
All, thank you for the advice! I weighed many options, played with a couple of NMTs and in the end stayed with the original setup: PS3 media server running on a regular PC (sitting in my office on the second floor) serving media files to my PS3 downstairs.
I am not exactly sure what DLNA limitations you guys are talking about: this setup allows me to watch pretty much anything I have been throwing at it: a wide range of audio and a wide range of video files from SD to 1080p.
IMHO, PS3 functions almost like a perfect player with its snappy interface. It cashes the files, menus etc and therefore browsing folders (with real time video previews) is a fast pleasant experience (unlike slow choppy performance of a couple of NMTs I tried).
As far as format support, natively PS3 is lacking support for certain media formats, but this is where PS3 Media server comes to the rescue.
My original search for a better solution was desire to go away from needing to run a PC, but like you all said, none of the NATs and Windows Home server devices are powerfull enough to take on the media transcoding job. So, having played with a number of options I went back to the original setup and this is the optimal one for me. YMMV.
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