I checked the Activity Monitor while it was running and it was not running in 64bit, yet it is a lot faster at encoding. Am I missing something?
Also I am having problems with the DVDs I rip and my Apple TV now!

The files look fine when I play them in QuickTime or any player on my MacBook Pro, but after I store them on my Time Capsule and sync them to my Apple TV (3.0.1) they have SERIOUS macroblocking and artifacting... they look horrible. What is going on? Anyone have a clue, or having the same problem???

I tried restarting my Apple TV and deleting and resyncing the files and once again, they look perfectly fine on my computer, but crap once synced. Is it likely a compatibility issue with Apple TV 3.0.1 and the new Handbrake 0.9.4? Everything was fine until I updated to 0.9.4.
This sucks! I'm right in the middle of ripping my whole DVD library!
P.S. Can Handbrake rip Bluray discs now? If so, how?