This video is from what DVD and why not start with your source media rather than lose the quality?
Also, this same story has been repeated far too many times. That is, a HDTV is not a PC. The encoding support is limited.
I tried playing a .mkv video on my LG 3D tv through the usb, but an error came up saying "unsupported audio." The video comes out great, but the sound does not come out at all. Also the subtitle does not come out when played on the TV, but comes out when played on the PC.
I tried the converting with audio from DTS to mp3/mpeg but the quality of the video dropped immensely even though I chose not to change to mkv format. I used the freemake video converter program.
Is there a way to convert just the audio and not the video quality? I've updated the TV with the latest firmware also but no luck.