I've been waiting to test this out for months now to see if this upgraded phone could pull the ultimate for my particular home theater setup. I use handbrake to encode my DVD and Blu-ray collection and since I'm not big on watching things on the go and would much rather have a great picture and 5.1 audio, I use the AppleTV preset and not the universal. Before neither the 3G or 3GS would play this format, but to my extreme happiness the iPhone 4 comes through with brilliant playback. This means that I don't have to bother with two different files again! I tested my most recent encodes and they are perfect. Anyone else to test this out?