Using SmartConverter

Just got my new MBP and Apple TV. I downloaded some shows in .avi and am using SmartConverter to get them into iTunes so I can play them on my Apple TV. SmartConverter gives the option of converting to a file specifically for Apple TV, or iPhone, iPod, or just into Quicktime. I tried one file and just converted to Quicktime and that seemed to play just fine over my Apple TV once the file was in iTunes. So, my question is why does SmartConverter give all those options? Would it actually be better for me to convert to the Apple TV format if I'm playing the show on Apple TV? Or is it fine to convert into Quicktime and then play on Apple TV once it's in iTunes.
Thanks.

Thanks for the suggestion, and hat's what I initially thought - I was running a Belkin modem and router which would drop the ADSL connection from time to time, and with the overall generally poor performance of that unit I decided that was likely the problem.
So, I upgraded that, - I now have a Netgear D6300 which is providing me with 60 mbps at the Apple TV, no connection drop outs or hang ups.  I've also changed my ISP from a reseller to a major provider in order to get a more stable overall service (not that that should impact the iTunes to ATV over WiFi)
But the ATV still buffers HD files so slowly.  
Using ATV I can stream plenty of material over wifi - Netflix in HD, YouTube in HD, and all other devices around the house (iPads, MacBooks, laptops etc) all stream content over wifi, share the iTunes Library all over the house.   Watching non HD tagged movies/tv shows from iTunes is also running well.
So I'm pretty sure it's not the wifi, unless there's some setting I need to adjust ?

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