Ok so as I stated in my last post, I've experimented with the latest firmware from the sony website (aa153) by running Netflix HD movies during prime time (7pm-10pm). On Monday night, I was able to watch for about 42 mins w/o problems, but then around 8pm, things got ugly with constant rebuffering. I quit the app, restarted it and it was better but still flakey. I then tried to watch a different HD movie, and it was really bad...pretty much unwatchable. I then waited an hour, and things got better.
All this time, watching anything on the PS3 works flawlessly w/o any rebuffering.
Last night, I watch a HD show on Netflix for about 1 hour w/o problems, but I wanted to watch Live TV at 8pm, so I stopped watching and resumed at 9pm. Things worked w/o problems.
I'm not sure what throws the thing into a funk where it gets into that constant rebuffering mode. It ain't the network though because I plugged into the router with my laptop and got 11mbps down and 4 mbps up.