mkv2vob lets you remux mkv with x264 video and AC3 audio to a vob file which is playable on the sony PS3.
No transcoding/recompression is done, the streams are simply split and mux into the vob.
Previously there was no way to get AC3 audio on the ps3, only AAC stereo.
Takes only a few mins to convert a file.
Download: mkv2vob 2.4.6