PS3 not working when I turn off transcode

[phibertron]

I am trying to evaluate if mezzmo is the new product for me

1. I love the custom navtree abilities it allows for (wicked awesome)
2. I love the fact that I can have it transcode when needed

But there are a few issues I cant seem to figure out
Here is some background info

If have a collection of movies in MP4 format
They all work "as is" no need for transcodeing to my xbox, ps3, iphone, android
I first started to use Windows Media sharing on Windows 7, which works
I currently use Twonky, which works very well for me, just limited in navtree customizations
( there is no transcode going on with windows media streaming or twonky and they work with a lot)
So I went ahead and installed the current version of mezzmo
And at first glance all seems ok, and things did work
But I couldnt help but notice that mezzmo is presenting "ALL" of my MP4's to the PS3 as a type "MPEG TS"
Upon further investigation, it appears that "ALL" videos are being passsed through ffmpeg
This I thought was rather odd
I also noticed that ffmpeg was running ans was transcodeing everything!
So I turned off transcode for the device, and then nothing worked
all videos say unsupported

I am at a loss as to why this is?
If all of my videos work as is with every media streamer out there without transcode
why would turning it off in mezzmo make the ps3 thing they are unsupported?

Also why are all videos being passed through as MPEG TS type ?

Thanks for any help with this

Note:
I also tried different device profiles with the PS3, but no luck