(Revision 4 - Updated 10 May 2012) Now that Handbrake's nightly builds support Blu-ray subtitles, it's pretty much easy as pie to get Blu-ray movies transcoded the Apple TV. Here's how it's done. Materials A Blu-ray drive, such as this Lite-On (not tested by me, but should work) and an external enclosure, such as this BYTECC (the replacement of the enclosure I own) Make MKV Handbrake nightly build 4632svn x86_64 or later Methods 1. Insert a Blu-ray disc and launch Make MKV. After the disc is opened, decrypt it and then rip to your hard drive the titles you're interested in. You only need DTS or AC3 audio; you don't need True-HD or DTS-MA audio. Find the subtitle track(s) that you want to keep. This is usually just one - forced subtitles that you'll burn in, such as the non-English speaking parts of Iron Man (subtitle track 5 of the USA distribution Blu-ray Disc). 2. Open the MKV files generated by Make MKV with Handbrake. 3. Choose the Apple TV preset in Handbrake for your version of the ATV. You can change it to 720p with "Picture Settings" if you so desire (1280 by xxx) so long as it is no more than 25 fps (Apple TV 1) or 30 fps (Apple TV 2). If the disc has a DTS track, Handbrake should automatically set to transcode it to AC3 for track 2 audio. 4. If you want/need subtitles, click on the Subtitles tab of Handbrake, choose your track from the pull-down and check Burned-In. Finding the right subtitle tracks can be tricky since most movies have more than one English track. For most of us, we only want the subtitles when foreign languages are spoken. 5. Transcode with Handbrake ("Start") and drop into your iTunes, give it cover art (e.g., Amazon), a description (e.g., IMDB) and assign it a genre, then sync to your Apple TV.