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If you have a unified collection of commonly used formats (mp3, mp4, m4v, maybe even avi), you can use the Windows Media Player server that's built into Windows. If you use non-popular formats such as FLAC and MKV or hosting on a Linux machine then you will probably be more interested in the PS3 Media Server software.
Please note that PS3 Media Server requires a strong CPU to support transcoding on the fly.
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