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I have AppleTV and an iPod Classic and I have learned from experience to make my movies for the iPod so that I can play them on both. I haven't really noticed a problem with the resolution. Obviously I would rather have them in the highest resolution possible, which would mean making two different files. Besides the obvious problem of them taking up too much space, there is the confusion problem, figuring out which file is which.

I would be interested in hearing what others do.
 
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