I'm trying to get my converted movies get as smooth as possible but with no optimal result so far... I'm using latest iFFmpeg with 1.2 binaries and have so far tried two presets for converting AVI to mp4 so that I can use it in iTunes. H264 Normal. the sound and video "freezes" for a millisecond every 5 seconds or so when streaming to ATV3. Very annoying! Also the audio is poor quality. Apple TV preset gives me good audio quality but still the small freezes when streaming from iTunes. It's not network related so I guess there is something in the conversion that iTunes/ATV doesn't like. The source I'm converting is mpeg 4, AC3 48000 Mhz, 5.1. (I've tried different sources with same result). Are you using presets for converting movies to ATV or have you found manual settings to get an optimal result?