This is for anyone with a PS3 who wants to be able to play a BluRay structure from a USB device on a PS3. The benefits of this over streaming are that you get VC-1 video, HD audio and subtitle support.
Firstly, you must use TSMuxer to select which streams you want to keep. In the Split/Cut tab, split the files every 4GB (this is because the PS3 will only read FAT32 USB devices)
Once you have your output from TSMuxer, place the BDMV and CERTIFICATE folder inside a directory called AVCHD on the root of your USB device. Run AVCHDMe and point it at the BDMV folder, click Apply. The USB device can now be connected to the PS3 and the BD structure will play.
Anyone who still uses this for doing AVCHDs on a FAT32 hard disk to move over to AVCHD Manager, which includes all the functionality of AVCHDme and more.