Originally Posted by jchunter
The "PAL is not supported" error message is misleading at best as the PS3 plays my PAL MPEG2 files copied to DVD without any problems. However, if I try playing a Region 2 DVD it displays "PAL is not supported". What it really means is that it's perfectly capable of playing PAL, but it will not permit playing DVDs unless they're Region 1, at least until someone figures out a region-free fix.
The region-free fix is called "DVD shrink". Just re-author your PAL discs without a region code in that program and burn them to a DVD-R. It's time consuming, but will be the best possible picture quality.
If your movie is over 4.7GB, be sure to buy a dual-layer DVD-R if you want maximum video quality. Otherwise, DVD Shrink can certainly compress it to fit on a standard 4.7GB DVD-R, but a bit of quality will be lost.
I have never tried to play any PAL source through a PS3, but if you're sure it will work, then DVD Shrink will cure your region code problems.