Hope this bit of info helps also...
The default bitrate when using the ATV preset on Handbrake is 2500kbps, which for a 2 hour movie is about 2+GB
I tweaked the bit rate ripping Raiders of the Lost Ark at 1000kbps then 1500kbps and finally at the default, 2500kbps. The 1500kbps was totally fine and saves you over a gig space. I think the final file size for Raiders at 1500kbps was 956 megs as opposed to 2.13BG for the default setting on Handbrake.
I watched the 2500kbps (Apple TV preset) vs the 1500kbps (custom) and unless you're a REAL CRAZY videophile you can't tell the difference.