It maybe kludge, but it's the best damn looking kludge I've ever seen and what's more - it frickin works!

Also you might find a half-decent mp4 container in the gstreamer-bad plugins, but good luck compiling them on the device. The standard avimux seems to work well for the most part (not for 640x480 res though...).

I don't have a ps3 so I'm not really sure what I can do on my front...

Edit: Hmm... your method seems to mess with my menu system. I was planning on releasing an update today but it might take a bit longer to squeeze this in..

Edit2: screw it. I'm gonna release my update later today, and then factor in your script a day after once I've sorted out my menu. Two updates in one week, you lucky bastards