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My PS3 works flawlessly for this. Just install PS3 media server on the PC and then you can play files that even the PS3 don't recognise natively. The bonus of a bluray player is a great addition to the media possibilities.
One thing I found is that although streaming media over wireless is possible, heavy action scenes can slow down. I would recommend a wired connection to ensure smooth playback.
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I am Hanabal, Phear my elephants
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