IllegalPaladin on 22 October 2009
Yes, you can play video files off USB, memory cards (assuming it's one that has the ports), and disks. You'll either have to create the correct folder structure and drop them in a specific so you can get to them in one step once you're on the PS3, or use the option 'display all' to search for whatever folder you need.
As for formats/codecs, somebody else will have to list everything as I don't know. I do know that I've been able to throw lots of things on the hard drive and it's been able to play them. Whew, it's crazy to think just how far it's come since launch where you had to jump through the hoop of converting all your videos just to watch them.
