Hello Everyone,
I have just encountered the same isse since iTunes 11 came out and Apple TV did a refresh around the same time. I have a large video collection, mostly DVDs converted using Aimersoft Video Converter Ultimate. It has been working like a charm until the last update, but since that, the videos coded in HD (720p) are stuttering and the audio and video get out of sync. I do not have this problem with SD videos, or from movies purchased from iTunes.
The files work fine on the computer, though not from iTunes, I had never been able to get a perfect playback from iTunes, I guess it is due to the size of my collection and that my PC only has 4GB of RAM.
I understand that the movies get downloded into Apple TV's internal 8GB memory, so the PC performance should not be an issue once the movie is on ATV (I use version 2). As I will sooner buy a new streaming device than re-encode my entire collection, I am seeking if anyone can advise what can I do here? Is there a way to go back to an earlier firmware of ATV? I really like this neat little box, it would be a shame if I had to throw it out because of a stupid update.
Thanks,