You're welcome!
I can't really help much beyond pointing to the software itself. I tried it out of curiosity running it on one of my Linux boxes some months ago. (I don't use Windows.) However since that computer is connected directly to the HDTV, I don't need to stream. Also I think on the Linux platform ps3mediaserver uses
mplayer/mencoder or
ffmpeg, not VLC, to handle transcoding. If you install the excellent
smplayer for Windows, you'll get an mplayer binary as part of the deal, though I don't know if that's sufficient for ps3mediaserver. There's a lot of discussion about this software at sites like
AVS Forum as well.
Sorry to hear there's no one else there to celebrate Father's Day. From one father to another, let me extend to you my good wishes on this our day!