HD Video for Consoles

I have downloaded a copy of transformers in 720P and want to stream it to my xbox and ps3 via tversity with a wireless G network and keep the best possible video quality.
I have everything setup and working well i just need help converting the video so that the ps3 will play it without transcoding and shuttering. I first tried to use xenonmkv/gotsent to convert it to mp4 which worked well but the bitrate of the video is just to high and causes the video to shutter every few minutes since it’s a wireless G.
I then converted it using “Xilisoft.Video.Converter.Ultimate” and have tried various formats of h264 and divx, so to the questions;
1.) I converted it to divx HD with a bitrate of 5000 at 1280×720, and it plays almost fine, but what i don’t get is when it was in mp4 format with h264 codecs and a bitrate of 2000 it shuttered. Why dose it lag with the h264 mp4 but divx at 5000 plays fine?
2.) Any variation of h264 lags the video why is that, even on lower resoloution?
3.) What would be the best setting to use to have the best video quality? like bitrate codecs etc.
Answer #1
because the h264 codec uses alot of CPU power to decode and encode which will interrupt it from being able to send that across the network.
you pretty much need a multi-core cpu in order to handle the h264 codec playabilty.
Answer #2
haha, no that’s not the issue. I’m running on a quad core with 4gb of ram, the issue is with wireless g networks and how it handles sending data. which is what i do not understand