@James – The playstation 3 can definitely read DVDs with HD footage on them, however they may not play back in WMV format. The Playstation manual states that some WMV files are supported though as far as I can see:
Another option is to put raw AVCHD clips on DVD as the Playstation 3 will play them natively too. There is another app from Shedworx called RevolverHD that can be used for making DVDs but it's Mac-only at the moment. But burning a data DVD with the raw .mts avchd video should work on the Playstation 3.
Hope that's helpful!