Hmmmm google the program mkv2vob
Get an 8 gig usb drive for transfering kids movies and yours to the ps3 hard drive.
HD tv shows in 5.1 dolby digital are great.
Remember google is your friend
Last and not least you need a 5.1 dolby digital capable amp and speakers plus active subwoofer.
A fibreoptic cable or tos-link cable.
The HDTV is for watching the video via hdmi cable and the 5.1 amp is for the sound via the tos link cable.
Do not! use the tv speakers as they produce crappy sound.
A good game is pixel junk monsters for kids.
An internet hookup to download all of the free game demos from the PSN store i.e. valkyria, bioshock, fracture, bad company, warhawk, overlord, motorstorm, eden, lego indiana, force unleashed, turok, blazing angels, monster madness, bladestorm, civilization, devil may cry, ratchect and clank, dirt, paradise city, formula, nba, nhl, dark sector, blood shot, jericho, strangle hold, time shifters, days of the blade,ninja gaiden sigma,...........well you get the idea that there are some game demos here and there.