I would also like some advice on

[SkiDoo_163]

I would also like some advice on best possible settings especially now that the ATV has V3 firmware which seems to be Dolby 5.1 compatible? I have a Panasonic 50" TV so would also like advice on best possible video format for full size picture? Tired of trialling settings as each trial takes >1.5hrs then ITunes sync to ATV(another 30mins) before I get a result.

[GregiBoy]

I would then try modifying one of the H264 Audiocopy profiles and make sure that you select the AC-3/5.1 audio track.

To save you time on the testing, just select a couple of chapters instead of the whole title using the "Title Start/End" settings below where the title is listed.