Multiple formats of same movie on iTunes?

If I want to watch my movies on my iPhone or iPod I convert them using Quicktime (640x480 <1500bps) and then stick them into iTunes for syncing. Works great.
If I want to watch my movies on my Plasma TV I convert them using Quicktime (AppleTV setting 720p <5000bps) and then save on a USB drive and plug them into my living room xbox360. Works great. And far higher quality than the iPod setting.
What happens when I go out and buy an Apple TV to eliminate the xbox from the equation. Presumbably the Apple TV will sync from iTunes, so I will need to put my AppleTV coded movies in there?
But...... surely I will then have 2 copies of everything in iTunes. Will the AppleTV menu cater for this? It will be pretty cubersome if not, and might be a pain for other members of the family to navigate (hence defeating the point of getting an AppleTV to replace the xbox)
Any help much appreciated.

Sorry for delayed response - I've been away for a few days.
This is the bit I don't understand. Being able to sync a playlist (that contains videos) as you describe in your post is exactly what I'm trying to do but unless I've missed something (entirely probable!) then I can't seem to do it.
When I sync my iPhone it does not give me the option to sync a playlist with videos in it. I only get the tick box list of every single movie file within iTunes (hundreds as I have lots of trailers).
eg. Can you confirm whether you can currently do the following: 1)Create a playlist entitled 'My iPhone Videos'; 2) drag 2 or 3 movies that I want to watch when next on train into that playlist; 3) sync my iPhone to the playlist 'My iPhone Videos'.
It sound like you're doing this. If so, please explain step by step.
Many thanks.

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