Seems to be okay for me. Purchased material and otherwise.
I'm still trying to figure out why iTunes won't allow TV Show/Movie tag editing...
Purchased material is no problem, it's the ones I encoded using Handbrake and Visualhub. All of a sudden, I'm getting this 'Video format is not recognized', even though I played these movies without any glitch on my AppleTV using iTunes 8.2.1.