I've been using MKVtools to convert my video files to MP4/M4V for compability with my ATV2. Since it seems like MKVtools has been the only (as far as I have discovered) app that can use passthru on h.264 MKV files (no conversion needed) I have been in love with the application since i first installed it. On my MBP 2.4 it takes just a few minutes to "convert" a 720p 42 min tv episode (~1 gb) from MKV to MP4, instead of several hours using tools that have to process the h.264 video. However, since I installed OS X Lion DP MKVtools stopped working for me. I have since then relied on AirVideo to convert my MKV's in real-time and stream to mu iPad, then used AirPlay to my ATV2. The downside to this, if your PC is powerful enough to process 720p in real-time, is that AirVideo converts the 5.1 audio to stereo. Yesterday I discovered that the guy(s?) who makes MKVtools have released a beta version of MP4tools, which is basically the same as MKVtools but more focused on the MP4 format, and with quick settings for iPhone/iPad/ATV2 that seems to work fine, EVEN in Lion. ) The app is free with a $5 registration that enables queing of files and gets rid of the "popup wait 5sec" dialog when opening a file. Since MKV seems to be the format of choice for all "scenes" that provide movies and tv shows via torrents etc, i just love MP4tools/MKVtools since it is just what I need. Unfortunatly, these apps is for OS X only. Also, I have been using an app called iSubtitle (can be purchased in the Mac App Store) for fetching and editing the meta tags, movie cover images and inserting subtitles. It's a really intuitive and smooth process with lots of easy-to-use tweaks, like syncing subtitles if they are out of sync. It comes with automatic fetching of meta tags from TagChimp, so a lot of movies automatically gets the right title, description, cover image, genre, etc, which makes it look really good when browsing your iTunes library frothe ATV2. Just wanted to share this with you people, I think there's many out there that is frustrated with the lack of supported file formats for the ATV2 and dont want to wait several hours of converting their files. MP4tools can be foubd here: http://www.emmgunn.com/mp4tools/mp4toolshome.html Now, my guts tell me that there MUST be some drawback on using passthru when converting... I am sure that someone here can point them out? PS. Sorry for rambling.