I got it to work with only some of my videos. I had some mp4s, some mpgs, some mp3s, and some photos, but the file sources were originally from all over the web so it might just be the saving problem is due to the codec, file naming, spaces special characters, etc. I'm still trying stuff. Hope you guys have better luck.
Oh and some of the mp4s that work on my computer and psp will not work on the ps3 when using this method to transfer. Weird, but still beats the old way.