Thanks for the reply.
I was able to convert the DTS-HD file into AC3 and mux it back into my video file. It plays flawlessly 5.1 surround.
Now I have heard that the PS3 can stream regular DTS, not DTS-HD or TrueHD. I can mux the regular DTS file with the m2ts video file, although when I stream I get no audio. I know there is a way to trick the PS3 in playing the DTS just don't know the steps. If anyone can help that would be awesome.