iTunes 7.2 "Convert for Apple-TV.......

An article on MacDailyNews indicates this new function in iTunes 7.2 will convert movies for Apple TV to as high a quality as 1280 x 720p. You must highlight a file in the 'Movie' section of the iTunes library, then click on 'Advanced' and the convert selection. It doesn't appear to be an option in the TV show or Podcast section of the Library.

Question - Since all of the movies in my Movie section of iTunes were converted from DVD using Media Fork or Handbrake, how would this new function be of any use? Since the file you're converting must first be in the itunes library, how would it ever get there unless it were already compressed and to a level below 1280 x 720p? since MediaFork and Handbrake normally covert to around 700 x 400????

When I highlight one of my files to convert, it gives a message that "one or more files are already converted for Apple TV. What gives? I want 720p!?!@.

The output quality can never exceed the source quality.

You can't get it from the files you have already converted as they are already compatible. You'd have to re-rip at higher rate with HB and then let iTunes down convert it to the selected format. Either way, HB won't go that big. If you took a 640x480 and had it upconvert to 1280x720 it would not look any better than the 640x480 version and would likely look worse since something is always lost in the conversion process.