Greater HD capabilities with 2.0?

Hi all,
I purchased AppleTV on launch mainly for watching podcasts and some of my own content (photos and videos that I've produced). I've always been disappointed with the rather odd HD limitations (only 24fps at 1280x720). So I have two questions for my fellow video nerds:
1. As I won't have a chance to play with the new update in earnest until the weekend, has anyone out there been able to squeeze a better HD framerate out of the device since the upgrade, even if it's just going up to 30fps? I have yet to find a way to convert my 1080i stuff to 24p without it looking jerky.
2. Can we embed AC3 audio now and have it pass through or is that only rented movies?

Max resolution and frame rate still apply on the Update, sorry upgrade, but now TV resolution offers 1080p as an option (woo-hoo). My 1280 x 720p at 25fps stuff looks really good on the 1080p resolution setting.
The majority of feature films are made at @ 24fps so increasing the frame rate is not always the best way to improve quality. If the film you are trying to view is encoded using H.264 set to 1280 x 720p, 25 fps and a data throughput of 5000Kbps (max) the playback is very good. I have done both single pass encoding and multi-pass encoding, multi-pass encoding does improve the quality but does add a huge amount of encoding time to the overall process.
As for your second point, I haven't tried embedding AC3 audio onto any of my projects. The sound recorded on my HD DVProCAM is transferred into Final Cut (FC) when I import my project. I then edit it within FC, correct levels or remove audio on a specific segment and replace with something from my iTunes library.

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