First of all, kudos to Sony for producing what I think must be the first 1080p60 AVC file to playback on PlayStation 3. Posters on the AVSForum tipped me off to the 1080p download available at WipEout HD website. Encoded at 20mbps with peaks at 49mbps, it's a worthy workout for the PS3 - but it's a shame that the gameplay footage has so much v-lock screen tear.
The video is also noteworthy in that I could not match this performance initially whatsoever, despite matching its encoding profile as closely as I could using x264. It turns out that the video divides the image into 'slices' which PS3's Cell CPU decode in parallel... and x264 doesn't support slices.
However, the Mainconcept Reference encoder does and while it's horrible to use compared to x264, I quickly had 1080p60 material playing back nicely. I'll have to consider updating the Devil May Cry demo on DigitalFoundry.org to replace the existing VC-1 encode as I get the same quality at a lower bitrate and AVC is clearly more suited to the PS3's media playback capabilities. That's if I can find someone with the full version to do the encode for me, as the demo version watermarks output and I'm not paying $1,999 for an encoder that is inferior to x264 in just about every way.
PlayStation 3 WipEout HD supports 1080p60 (with one or two interesting technical tricks I might go into at a later date) and the AVC video Sony produced for it is well worth downloading and checking out on your own PS3...