Which setting should I have my apple tv set for picture resolution/quality it takes like a whole day for a movie to download before we can watch it

Which setting should I have my apple tv set for picture resolution/quality as it can take a whole day to download a movie before we can watch it??

The video/audio display settings should set automatically for the best your TV can handle (720p AppleTV2, 1080p AppleTV3).
The download resolution for rentals or playback of purchases from the cloud is set in settings for iTunes store.
Sounds as though you have slow internet.  For near instant streaming of video from iTunes store you need around:
Standard Definition     2.5 Mbps
720p HD                    6 Mbps
1080p HD                  8 Mbps
Any slower for a given quality setting and the movie has to buffer as it can't keep up in real time.  This might be a few minutes if close to the rated speed or many hours, even overnight.
As pcd251s suggests you could test internet speed (speedtest.net on a computer for example).  If that is fine, sometimes the LAN if on wifi can be extremely slow in certain locations - ethernet connections would troubleshoot that.
Slow internet is the common issue here.  AppleTV does not have permanent storage and using it to play other content or browse trailers while a rental is buffering can reset the buffering process.   In such cases you might be better off planning in advance, renting in iTunes, letting the whole thing FULLY download and it will then be available across teh LAN to stream from computer to AppleTV under Computers>iTunes library name>Rentals.
AC

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