You need to enable home-sharing on your computer (iTunes - advanced) as well as on Apple TV. When your computer is on and running iTunes you can access your movies through the computers section on Apple TV.
Content will need to be compatible with Apple TV
- H.264 video up to 1080p, 30 frames per second, High or Main Profile level 4.0 or lower, Baseline profile level 3.0 or lower with AAC-LC audio up to 160 Kbps per channel, 48kHz, stereo audio in .m4v, .mp4, and .mov file formats
- MPEG-4 video up to 2.5 Mbps, 640 by 480 pixels, 30 frames per second, Simple Profile with AAC-LC audio up to 160 Kbps, 48kHz, stereo audio in .m4v, .mp4, and .mov file formats
- Motion JPEG (M-JPEG) up to 35 Mbps, 1280 by 720 pixels, 30 frames per second, audio in ulaw, PCM stereo audio in .avi file format