I found 2 great little programs for Apple TV owners. Podtube ($5): downloads youtube videos straight into iTunes, and then you can view them on your Apple TV. Inside iTunes you can identify it as a music video or movie. Handbrake is a free DVD ripper (for your personnaly owned DVD's) It uses either h.264 or ffmpeg encoder to turn dvd's into mp4's. Using the AppleTV preset (h.264 encoder, 2500kbps) I ripped a couple of my DVD's and imported the videos into iTunes. The Matrix looked great, full screen, crisp image, and really no noticeable artifacts. The FFmpeg encoder doesn't look as good but it's 2-3 times faster. Unfortunately no way to get DD5.1, so you have to go with dolby pro logic surround.