PSP AVC Not Recognized by PS3 nor Real Player

I have tried to play my PSP AVC encoded movies (Sony->PlayStation Portable (AVC/H264, Firmware Version >=2.6) on my PS3 and I get the error message "Unsupported Data ". On the computer, Real Player can’t play them either.

The files play fine on the PSP itself and on the computer they play with no problems with Apple’s Quicktime.

Why is this?

The MP4s for Apple iPod and PlayStation Portable (MPEG, Firmware Version >=2.6) play fine on all the players and the PS3.

Is there something I can do to make all the files I have already encoded, work with all players and the PS3?

The reason I want to see them on the PS3 is because surprisingly, they actually don’t look as bad as you might think. The machine does a very decent job of smoothing out the video for such a low resolution. And if the new higher resolutions get implemented in CloneDVD Mobile, the AVCs should be DVD quality and I would really like to be able to play them anywhere.