While it doesn't look too bad in a paused frame, in motion the colors shift quite a bit causing some weird flickering. At low bit rates, there's heavy macro-blocking as well. The encode I did at 1200kbps wasn't very good, I did another encode at 4000kbps that looks great, but also came out at over 3GB! It looks like somewhere right around 2000kbps will be the sweet spot to fulfill my own needs.
All in all, I would have to say that I'm happy with the purchase. Encoding an entire movie in a little over an hour, versus the 8-12 hours I used to wait for, is worth the loss of some detail. Hopefully Elgato will continue to improve the software, right now I wouldn't trust leaving everything on Automatic (such as the issue with it not turning Overscan off with Bachelor Party), and we need a way to select individual episodes for multi-episode discs.
I see. HB Apple TV default is 2500kbps, single pass. So a movie thats about 1:30 min s/b around 1700kbps and any other movie over 2 hours s/b around 2000 or 2500kbps? I'l have to to try it with that movie and see how it goes. It's so nice having the Turbo to try out different settings and seeing results within a few hours, because I can't imagine trying these without it. It would take days just to do a comparison.