Data Type Not Supported for MP3 Files on the Play Station 3?

Have you tried to copy one file to the PS3 hard drive and play it from there? That would tell you for sure if it's a stream issue or if it's truely not supported. Create a folder called MUSIC and place a file inside. Copy the folder onto a flashdrive, CD or DVD and insert to PS3 and click the icon under xmb>Music