I have a bunch of DVD rips from back in the day that I want to move to an external HDD. What is the preferred format to do this in? I have both PS3's and a WD Live TV to stream to. The PS3 is more difficult. There doesnt seem to be a rhyme or reason why some formats wont play on the PS3 either streamed or otherwise.

I have an elaborate A/V system and the formats which allow a lot of rips to be stored on a HDD unfortunately also produce a pixilated picture on a 60" display.

I know my question "which is the best" is a dumb neewbie question but all things considered which gives the best performance for size? Also to consider is the sound format. I have more money spent on surround sound than anything and would like to keep Dolby and DTS which I suppose indicates MKV.

I was hoping for some thoughts before I re-rip hundreds of vids to another media.