I guess the PS3 doesn't work that way. I loaded the BDMV onto the root of a FAT32 USB Flash Drive. I loaded it in the PS3, hit Triangle to make it show all, and then was able to browse the file directory. I don't know what to do from there. I tried launching the files in the Stream folder. Some launched, but didn't have sound. Others didn't launch at all. I then tried replacing the index.bdmv and movieobject.bdmv using the ones in the Index and Movie files folder, but that didn't help. I stuck it in the PS3 and got the same result.
Oh man, sorry to hear that. I'll fiddle with the file on my PS3 when I get a chance to see if there are any tricks to getting it to work.