The new beta release of handbrake has been made and the new version has included PS3 video support. The following is taken from the FAQ on their website.

What is HandBrake?

HandBrake is an open-source, GPL-licensed, multiplatform, multithreaded DVD to MPEG-4 converter, available for MacOS X, Linux and Windows.

http://handbrake.m0k.org/?p=48

See the PSUbuntu forum discussion thread.

Petitboot is a very nice looking visual version of the bootloader for the PS3, kboot. According to the creator, it should work as a replacement of otheros.bld.

Find downloads and instructions here: http://ozlabs.org/~jk/projects/petitboot/

Thanks, Jeremy!

UPDATE 2: A sollution has been posted to the HowTos forum. Thanks, trainstoker!

Update: some people are still using this tutorial as a reference. Please see the installation instructions for the final feisty release instead!

Installing Feisty on the Playstation 3 will be a much easier experience than that of its predecessor, and here’s a short walkthrough for those that are interested in trying it out. Be aware that this is beta software, and that there are currently no working sound drivers available for the Fawn on the PS3. Read this forum thread for more information on the current status. If you’re new to psubuntu and not in the experimental mood, use the installation instructions for Edgy Eft instead.

Preparation

• Download the otheros.bld file and put it at the root of a USB thumb drive, memory card or external disk.
• Download a liveCD version of either Ubuntu or Xubuntu (there’s no kubuntu version out yet) and burn the ISO to a CD. Read this forum thread for a discussion on which desktop environment to choose.

Partitioning the PS3

In this step we will format the PlayStation 3 and create two partitions, one for the XMB and one for Ubuntu. Before formatting the PS3, you might want to backup your saved data.

• In the XMB go to Settings > System Settings > Format Utility > Format Hard Disk. Choose Yes.
• Choose Custom partition setting and Allot 10GB to the Other OS. Perform a Quick Format.
• Reboot the PS3 by pressing X on your controller.

Installing kboot

Insert the USB-drive and go to Settings > System Settings > Install Other OS. The boot loader should be automatically detected. Select OK to install it.

Booting the Live CD

• Plug in a USB keyboard and insert the (X)Ubuntu CD on the PS3.
• Go to Settings > System Settings > Default System, and select Other OS. Choose Yes and wait for the PS3 to reboot.
• At the kboot: prompt, hit Enter and the Live CD will load.

You may now install Ubuntu permanently by clicking on the install icon on the desktop.