Main reason i am installing YDL is because of the DivX playback functionality. Am i right in thinking i can burn a DVD RW with avi files and play them off it in my PS3 via YDL and VLC ?
also, i have purchased the Logitech cordless PS3 mediaboard. Is this ok to use for installing linux (as it is wireless) or will i need an actualy usb keyboard/mouse to install theni can use the mediaboard once i've got YDL running?
It's likely you know now, but just for other users' info, you will need a convential (wired) keyboard and mouse to install YDL.
Then, after everything works, you'll tweak your system to install wireless input devices.
yes that version of YDL will work and I have posted a thread that links to an awesome walkthrough on how to install ydl vlc and snes emulator if you need help.