It's weird, but any files that I play on the appleTv that have been encoded with the nero recode program all show "blockiness", somewhat like digital artifacts in HDTV. The files are high quality h.264 encodes and play absolutely perfectly and without blockiness in quicktime on my mac. Anyone know what the deal with this is? Anyone else had this problem? I'm guessing it has to be something with the gpu accelerated decoding of the graphics chips that the atv uses.