This is my workflow for converting Blu-Ray movies on my Macbook Pro (I have an external Sony Blu-Ray burner to do this).
1. Rip Blu-Ray movie to an MKV file using MakeMKV (currently free).
2. Add to the encoding queue in Handbrake using my custom preset to convert to m4v (I call it Apple Custom Blu Ray Rips).
3. Lastly, I usually add movies into iFlicks (use 'flatten to Quicktime movie setting') to add the metadata and have movies automatically added into iTunes.
On the AppleTV 2, all movies will show with correct titles, artwork, summary of movie etc.
I am looking at dropping Handbrake and iFlicks and using iVI as it can encode my MKV files to m4v and add meta-data all in one program, and I think it was only about $5 from the App Store. Also, iVI takes advantage of all cores (as far as I remember, iFlicks does not). I can provide you a copy of my handbrake preset file if your interested (I will change the Framerate settings for you first as I have mine set to PAL - I am in Australia).