The PLAYSTATION 3 supports the following movie and video file formats:
DVD Video with either region  or [ALL] 1
DVD-R/-RW, DVD+R/+RW1, 3
Blu-ray Discsâ„¢ (BD) containing video content with region code [A]5, 7, 8, 10
BD-ROM, BD-R, BD-RE3, 4, 5, 7, 8, 9, 10
MPEG-1 (MPEG Audio Layer 2)
MPEG-2 PS (MPEG2 Audio Layer 2, AAC LC, AC3 (Dolby Digital), LPCM)
MPEG-2 TS (MPEG2 Audio Layer 2) AVCHD (.m2ts / .mts)
Memory Stickâ„¢ Video Formats
MPEG-4 SP (AAC LC)
H.264/MPEG-4 AVC Main Profile (AAC LC)
Motion JPEG (Linear PCM)
Motion JPEG (u-Law)
MP4 File Format
H.264/MPEG-4 AVC High Profile (AAC LC)
DivX and VC-1 (WMV)6
Requires PLAYSTATION 3 system software version 2.10 or higher.
Things to note about movie/video formats and playback :
Depending on the data type, some files may not be playable or some control panel options may not function during playback.
Some video files distributed over the Internet have playback restrictions. For details, contact the content provider.
When using a USB adaptor to play video files, you may need to use a USB adaptor (not included) that supports copyright-protection features (to play copyright-protected files). When using a USB adaptor to play AVCHD-format video files saved on Memory Stick media, use a device that supports Hi-Speed USB (USB 2.0).
If your video files are copy protected, they may not play on the PLAYSTATION 3 system.
1 When outputting DVD content or PLAYSTATIONÂ®3 format software in SD resolution, only discs recorded in the NTSC standard can be played.
2 Multi-channel Super Audio CD playback requires a multi-channel audio receiver with HDMI input.
3 Playback only.
4 Playback of BD-RE ver 1.0 discs is not supported.
5 Copyright-protected Blu-ray video discs can only be output at 1080p using an HDMI cable connected to a device that is compatible with the HDCP (High-bandwidth Digital Content Protection) standard.
6 To play VC-1 (WMV) format files, you must go to (Settings) > (System Settings) and set [Enable WMA Playback]. Copyright-protected files or files that were encoded by using DivX 3.11 cannot be played.
7 With system update version 2.10 or greater, Blu-ray Disc Profile 1.1 is now supported. This allows the "Picture in Picture" feature to be used with some Profile 1.1-compatible Blu-ray Discs. Features available vary depending on the disc.
8 Blu-ray Discs programmed in 1080p 24Hz are supported via the HDMI port only. To enable this setting go to [Settings] > [BD/DVD Settings] > [BD 1080p 24 Hz Output (HDMI)] and change this setting to "Automatic." Note that both the display/AV amplifier (receiver) and the Blu-ray Disc in use must support 1080p 24Hz for this output to be supported.
9 BD-R version 1.2 (LTH* BD-R) discs can now be played.
* LTH, or low to high, is a recording method that supports organic dye, write once BD-R media.
10 With system software version 2.20 or greater, Blu-ray Profile 2.0 (BD-Live) is now supported. You can connect to the Internet while playing discs that support this format so that you can obtain additional features. Features that are available vary depending on the software in use.
Hope this helps
Try Generic.avi.xvid.source audio