You need the latest Perian installed, get it here...

You need the "literally" latest HandBrake (Not Available Yet). For all you Paradox's I have compiled and built the latest HandBrake SVN 1799 (Updated 10/01/2008) on my MacBook Pro Core Duo 2. You can download it here...

Extract it then install. To install just drag to your "Applications" folder.
When you first open HandBrake it will ask you for video source location, simply select your MKV file.
For encoding preset use AppleTV preset, BUT we need to change a few settings.
First "UNCHECK" the "64 Bit MP4" box.
Second click on "Chapters" tab and "UNCHECK" the "Create chapter markers" box.
Third click the "Video" tab and click "Picture Settings..." button set "Anamorphic" to "None" and check the "Keep aspect ratio:" box if it doesn't by itself.
Fourth (Optional) I set the "Average bitrate (kbps) to 2000 instead of 2500, you can set it to what ever you want, up to 5000.
(FYI) under the "Audio and Subtitles" tab you'll see the AAC and AC3 audio settings, as long as the MKV has AC3 and you play the video through iTunes or stream to your Apple TV with shared iTunes you WILL GET SURROUND SOUND. If you hacked your Apple TV
and share through AFP or SMB or just drop your videos on your Apple TV or play in QuickTime you WILL NOT GET TRUE SURROUND SOUND, only AAC Dolby Pro Logic II.Click "Start" and in about 1-2 hours your in HD heaven.
I have Fast Forwarded, Rewound, Stopped, Paused, and Resumed with NO ERRORS.

Now... PC users, an assumption... if you build the latest SVN for HandBrake on a PC it should work as well. Other libraries I loaded libdca-0.0.5, libdvdcss-1.2.9, libdvdread-0.9.7, and a52dec-0.7.4. I'm not sure if you even need these on a PC or if they effect the Mac build. I primarily loaded them for MacTheRipper.





