From Eric Lempel, Director of Playstation Network Operations:
Scheduled for release in the next few days, firmware 1.82 is an update that enables the playback of AVC High Profile (H.264/MPEG-4) files. As most of you know, these are high quality files that you’ll now be able to play on your PS3. Hopefully this update is moving us closer to the audio playback features many of you commented about in my post the other week. We’re continuing to evaluate and improve things across the board, including PS2 software compatibility.