Submitted this video to try and get the word out: http://www.youtube.com/watch?v=SBxjf44Sm8g
(A demonstration of the skipping, pausing and replaying of advertisements with the hulu plus app for the PS3 (downloaded late November 2010). Every ad does this. My internet is running at 19Mbps – I ran speed tests before and after taking this video, and tried running SD – this isn’t a bandwidth issue. Nobody is touching the controller during this. It’s just a buggy app. In addition, the content also skips forward randomly by 10-30 seconds, it never resumes a video without skipping or playing fast, and is all around pretty unusable.)
Here is another guy’s example: http://www.youtube.com/watch?v=uNch2Km1uYI
If you are having these issues with the hulu plus app on PS3 too, please, head over to hulu discussions and let them know.