iPod/Apple TV aspect ratios

in iPod + iTunes + AppleTV edited January 2014
For all of you who are digitizing your DVDs into files for your iPod and AppleTV: What file settings are you using?

I started using MactheRipper with DVDxDV Pro at first, then switched over to using just Handbrake so I could maintain the 16:9 image. I'd like to digitize my movies just once, but it seems like the only way to do that is to digitize at a very low aspect ratio like 320x240, but I want to be able to use these files on AppleTV once it arrives.

I think that even a 720x405 mp4 with H.264 at 1000 kbps bitrate...looks not so great when it's blown up to a larger screen size. I have't quite been able to figure what resolutions AppleTV will play...as well as the widescreen iPod. If both will play 720x480-ish files, I think that's the logical direction to go.

Also, what would it mean if AppleTV could handle 720P HiDef? Would you digitize your DVD at 1280x720, essentially upconverting it to get better resolution? Or is changing the bitrate to a higher setting for the 720x480 conversion the only way to improve the quality of the mp4 image?

Lastly, do QuickTimes with the Sorensen Video 3 codec play on any of these devices? Was figuring that some of the rest of you were struggling with all this. I just want to do this digitize stuff once...the right way. Thanks in advance.
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