For those who need it
PS3 AVCHD Guide
1) tsmuxer GUI
2) A USB device
3) windows version of AVCHD Manager. Put this in the root directory of the usb device
4) Source mkv video file.
What to do
1) Load tsmuxer and open the video file
2) Select AVCHD disk as output
3) Goto split and cut option and ensure it splits large files.
4) Enter output location on the USB drive. e.g. g:\myfilm1\
5) Remove unwanted soundtracks and subtitles to save space (the ps3 will allow selection between what is available)
6) Start Muxing
7) Once muxing has completed start avchd manager
8) click identify and verify/change details
9) Click AVCHDMe
10) Click make default to make this the video the PS3 will play
11) Repeat steps 1 - 9 for other video files.
Plug USB device into the PS3 and it will detect the AVCHD folder. Goto video to play it with subtitles and DTS working.
On a JB PS3 you can use Simple AVCHD Manager to change the default video without needing to unplug the usb device.