Originally Posted by Furatudo
First of all, SMS doesn't support and has never supported .iso files, where did u read that?! Maybe u're refering to the ISO's created to boot SMS... it's different...
Second of all, SMS doesn't play DVD's. But the PS2 plays them, so u shouldn't have problems with burning them as normal DVD-Videos and playing them on the PS2 without any other software/hardware.
Now, if u really want to create ISO's with DivX/XviD files inside u can play them through network, just need to mount the ISO using Daemon Tools and share the Virtual Drive with RadHostCLient or ps2client. I'm not gonna go much deeper on this cause this would be just dumb, since u can play the movie files trough network anyway.