I was messaged with how to do this and decided to make it available for everyone.
Hardware
HD DVD Drive (360 HD DVD will suffice)
Programs
AnyDVD HD...
SlySoft Products | Copy Movie DVDs with AnyDVD and CloneDVD
EAC3TO...
eac3to - audio conversion tool - Doom9's Forum
EAC3TO GUI...
EAC3to Conversion Utility v2.00 (freeware)
MKVTOOLNIX...
mkvtoolnix -- Matroska tools for Linux/Unix and Windows
Nero 7.10.0.1...
Nero - Nero AG - Liquid Media to Simply Enjoy - Official Website
Nero 7.10.0.1 HD DVD BluRay Plugin...
Nero - Nero AG - Liquid Media to Simply Enjoy - Official Website
MKV2VOB...
mkv2vob: New App to Remux MKV x264/AC3 which play on PS3 - Doom9's Forum
First things first...
We are going to create a folder called 'HD' and place it in LOCAL DISK C:, then proceed to extract EAC3TO and the EAC3TO GUI to the 'HD' folder. This is where all the work you do right up to the end will be placed.
Step 1... Load up ANYDVD HD and your HD DVD disc. Rip the HD DVD to your hard drive (use the 'HD' folder as its save location). This process will take anything up to an hour.
Step 2... Now that the HD DVD disc has been ripped go the 'HD' folder we created earlier and delete the newly created files apart from 2 EVO files which are rather big in size.
Step 3... Launch EAC3TO GUI and load up EVO part 1 and EVO part 2 in the respective SOURCE FILE. Now directly below the SOURCE FILE boxes is another box called DESTINATION FILE. In this box put video.mkv (it is important that you add the .mkv at the end) and then click on CONVERT. A few boxes will open and you should see a progress bar. Once this has completed you will notice you have a rather large MKV file in your 'HD' folder named VIDEO.MKV. This is the video of the HD DVD you have just ripped yet it has no sound.
Step 4... Once again go back to EAC3TOGUI and load up EVO part 1 and EVO part 2 in their respective SOURCE FILE boxes except this time in the DESTINATION FILE change it to audio.ac3 (once again it is very important you add the .ac3) Click on CONVERT and once again you shall see a few boxes and a progress bar. Once the progress bar has completed you should notice another file in your 'HD' folder named AUDIO.AC3 which when played will give you the audio but no video. Now we have both the audio and video file we require (the audio will be 5.1, sorry peeps no TruHD or PCM)
Step 5... Now load up MKVTOOLNIX and MKVMERGE. You need to load up both the video.mkv file and the audio.ac3 file. Make sure to give the new file a title (prefabely the title of the film) Now click on START MUXING and the end result will be an MKV file which consists of both 1080P video and 5.1 audio in the form of AC3 (If you try to play the file and it jumps or is very shakey don't worry....your PC is just not powerful enough to run it)
Step 6... Now load up MKV2VOB and place you muxed file in the program. Before you start clicking away though please click on CONFIGURATION and change the output file to MP4 instead of VOB and use X264 as the codec instead of MPEG-2. Now you can also choose how to split the file whether it be into 4GB chunks or DVD-R chunks. Click on ADD FILE and wait for it to MUX and TRANSCODE...the end result is an MP4 file with 5.1 audio playable on the PS3... Now you can move this file over via HDD or over your NETWORK connection i.e TVERSITY and choose to stream it or hard copy it to your PS3 HDD
I know this is abit rushed and what not but any questions anyone may have I will answer (still at work you see)