The max bitrate Apple TV can decode is near abouts 5,000kbps. So your bitrate isn't the issue. Nor is the audio setting.
Give us more information about your setup.
It is a bit rate issue. The maximum bit rate for mp4 is 3 Mbps. 5 Mbps is for h.264.
Can you play it in iTunes? What did you use to encode it?
Depending on your framerate this is your problem.1280 x 544
Depending on your framerate this is your problem.
From http://www.apple.com/appletv/specs.html
"H.264 and protected H.264 (from iTunes Store): Up to 5 Mbps, Progressive Main Profile (CAVLC) with AAC-LC audio up to 160 Kbps (maximum resolution: 1280 by 720 pixels at 24 fps, 960 by 540 pixels at 30 fps) in .m4v, .mp4, and .mov file formats"
So, if you are at ntsc 24 fps then thats not your problem. But if you ntsc video at 29.97 fps (like say a ripped dvd of a television show or whatever) then the atv will not take it as the max size it will accept at that frame rate is 960 x 540.
I use to open an mkv file in QuickTime, export to mp4 with video passtrough and audio conversion to AAC.
So, how can i check if is high profile or not?
Most MKV's if not all are encoded with H.264 Codec and you passed the video through in QT Pro so it must of been H.264 or you wouldn't of been able to passthrough.
I think the reason it won't play correctly is because you passed through instad of doing a complete conversion. Copy the video (So you have 2 of it) and then do a full conversion not passthrough and see if it works then.
I'm pretty sure that if i'll do a complete conversion (no matter if QickTime oer VisualHub) it will work. But i'm on a Core Duo 2,16 Ghz iMac so...it will take me a long time.
Almost every MKV I have ever looked at was encoded with an h.264 profile that is incompatible with the AppleTV. I guess the "scene" likes their high profile.Most MKV's if not all are encoded with H.264 Codec and you passed the video through in QT Pro so it must of been H.264 or you wouldn't of been able to passthrough.
I think the reason it won't play correctly is because you passed through instad of doing a complete conversion. Copy the video (So you have 2 of it) and then do a full conversion not passthrough and see if it works then.
The OP did say it was an H.264 encoded file....