Over the years I've looked for certain information on the internet and come up with insufficient or unsatisfactory answers on some random thing that I've been trying to do at home or wherever. I don't expect that this page will have many updates, but what I write down might be of assistance to someone out there.
1 terabyte ExFAT formatted drive works on Sony Bravia KDL40EX720 despite officially only supportsting FAT 16 and 32. It will most likely work on any of the current model (2011) television, media player and Playstation 3, with up to date firmware.
Unfortunately ExFAT isn't supported by the Playstation 3
I've finally found a reliable converter for displayiong videos on the Bravia via USB or Ethernet.
Convert to MP4 at the highest setting with WinFF which appears to work on most operating systems except for Mac.