After burning many coasters and wasting many precious hours scouring forums everywhere i've finally got ps2reality 150 working on dvd. Heres what you do:
1) You must make sure your avi's are in the proper format.
Xvid with 1200 - 1400 bitrate at 640x272 works great with mp3 audio at 128 with 48 khz. Use Virtual Dub to do the encoding. Theres plenty of guides out there for it, just do a search.
2) Burning the Mediaplayer.
I've attached a dvd image of the PS2 Reality Mediaplayer 1.50 at the bottom of the page. Unrar it. It'll be about 2 gigs. Burn it using DVD Decrypter and it'll work perfectly.
3) Burning the AVI files.
Open up Nero and start a DVD ISO image use these settings: NO Mulitisession. Make the ISO tab look like the image attached below. All the other settings at default are ok. Then drag your avi files into nero and burn at 1x. MAKE SURE your avi files are in 8.3 format with no weird characters. Reality is really picky about that. For example movie.avi would work fine. *Use longer file names at your own risk! I do not know if they will work!*
4) Booting the Player.
Boot the media player with swap magic, gameshark, or the exploit. Choose to boot from the cdrom. Once at the screen with Browser as an option, click it. From there knife swap in your AVI files that you burned. Push O to refresh the player and it should show your avi files. Click on your avi file and it should boot. Watch your movie and it if seems to stutter, you need to crank down the bitrate on your movie by 1 or 2 hundred bps.
5) Random Notes.
-This cannot play VCDS or SVCDS!Convert them to Xvid.
-Nomod users cannot put the avi files on the mediaplayer disk. I've tried this and it would show the files, but it would give me the 'error -1' when i played them.
-There is no limit to the size of the avi disk.
-Thats about it. Have fun watching movies on your ps2! -700zx