recommended handbrake settings
From the Handbrake forums:
*** AppleTV 3 and the New iPad (Presets) ***
Postby HandBrake » Sun Mar 18, 2012 4:41 pm
You have a couple of options:
For the New iPad
iPad - Up to 720p. This preset will still work great on the new iPad. It will produce up to 720p content and keep filesizes down and thus is more suited for the limited space on this device.
High Profile - Up to 1080p. It'll take a long time to encode, but that is the trade off you need to make to keep file sizes in check for the limited space of the iPad.
For the AppleTV3
Normal - Up to 1080p. This preset is much faster than High Profile, but can produce larger file sizes. This may cause problems for weak wireless connected devices. Quality may be slightly less than High Profile
High Profile - Up to 1080p. Encodes will take a long time, but the quality is excellent and filesizes will be more reasonable than the Normal preset.