MKVtoVOB and MultiAVCHD

Crowley - as mentioned - a thread on MKV conversion

MKVtoVOB - use it to convert to MPEG, and split (4GB) if putting on a dvd/HDD for PS3

Easy to use, plenty of tutes around.

MultiAVCHD - great for converting MKV to a Bluray compliant DVD (AVCHD) for those friends who have only have a Bluray player. Bit fiddly, but a nice freeware program. Converts those pesky WMA encodes to complaint files.

Both will not re-code if you have the settings right, only takes a couple of minutes on a decent machine. I sometime recode the audio with MultiAVCHD to pull the target file size down.

AVI2DVD - convert MKV to DVD compliant disc, great program, but this recodes. Takes ages.

I have only recently started using the media server on my PC. Goes ok, it does chug on the HD stuff if you want to fast forward etc, especially if you are trans-coding on the fly. I have the the Mac in action, its DLNA is mickymouse

My ultimate set up is to have a WD Media player or a media PC, and a NAS. Nothing a 1000 bucks wouldn't solve.

But lately I have become energy conscious, so I just like having either the PC or PS3 on, not both all night. I need a bit of land and a big array of solar panels.

Edit - Almost forgot

They both handle subs, MKV is similar to DIVX, the container can have subs added to the mux

AVIAddXSubs - great program for converting avi to divx with subs