Extract FLAC from MKV and Convert to AC3? Options

[consultant]

I've having the toughest time figuring out how to extract the FLAC audio from an MKV and then convert it to AC3 so I can remux to a VOB or m2ts to play via USB HDD on my Playstation 3.

I tried the MKVExtract in MKVToolnix. MKCEXtractGUI won't demux FLAC. So I tried command line like this:

mkvextract --no-ogg source.mkv 1:video.264 2:audio.flac

It is interesting even though I used --no-ogg options the status message still says it is writting to ogg container. Does the no-ogg option not work so this is causing the problem?

Then I tried EAC2ToGUI and I get "the format of the source file cannot be detected" I get a similar error if I try to play the .FLAC file in VLC but after it displays
the error, it plays fine anyway.

Help!