According to initial reports, the Playstation 2.10 firmware supported DivX but not XviD. We reported this when the firmware was first announced, because after all, the site that reported it actually had it and actually tested it.
Unfortunately, the person who tested it may not have their network running properly. As it turns out, Xvid plays on the PS3 just fine. It streams from Windows using WMP11 just fine, without any suttering whatsoever. So don’t worry, your PS3 will play all those scene rips without a hiccup. This will be the last time I take the word of a ‘gizmo site’ with something that requires some PC know-how. That’s what we’re for! Unfortunately the firmware wasn’t available to me until just before I went to bed last night, so I couldn’t test it myself until this morning.