Aspect Ratio Issues with Apple TV and iTunes Movies!
I even ripped my copy of "Cars" which is a Anamorphic wide screen movie using Handbrake and it played at the correct aspect ratio. That movie actual size is 1011x360, but the AppleTV scales the video correctly and still respects the Aspect Ratio.
I just purchased Pirate of the Caribbean: At World's End via iTunes which is also a wide screen, but it's not playing at the correct aspect ratio. Instead it is stretching the video to be full screen. So it's being squished horizontally and it's drawing the full 720 pixels vertically. Simply put, it's is NOT playing at the proper aspect ratio. That actual size of the video is 853x356. Both vids are Mp4's using H.264.
Eitherway, this seems to be a bug. I hope that this is either a content issue, or a bug that will be fixed in the upgrade. I have iTune 7.6 (latest) and the latest QuicktimePro 7.4 and AppleTV Software Version 1.1
AppleTV, Mac OS X (10.5.1), PowerBook Pro