Over to Nicolas.
I have always believed that Apple TV was limited to 720p or 1080i (materially) but no! I do not know if it is only since the Update v 2, but I have just plugged in a full HD projector (Mitsubichi HC5000) on my amp DENON
And a new resolution appeared on the menu of Apple TV! I have noticed that it does not work with all cables.
After a few tests, the video is quite fluid. The B.A. HD wallE is remarkable. (Although slightly below the present on the Cars blue ray (or Ratatouille) BitRate on the H264
The blue ray: 20-30 Mbps BitRate of H264, the Quicktime file: 9 Mbps
[translation by jeremy]