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Doesn't TXmuxer let you split files (needed for mkv2vob)?
I've never used it before, but I was reading up on how to split/join files the other day (wanted to find out how I'd be able to join the extended LOTR films into 1 file as the Blu-ray's will be split) & I'm pretty sure I read TXmuxer could do it.
Try Vuze to convert it to a ps3 format. Download vuze free on your pc/laptop, then when it's converted go to the vuze folder from your ps3 and copy it from there on to your ps3 or watch it directly from there.
Let us know how you get on x