It would be great if .ISO support also allowed playback of .ISO’s ripped from BluRays.
I would not expect the ATV2 hardware to be capable of handling the bit rate from such .iso files. I would like to be proved wrong though!
Did somebody already tryed to play a BluRay .ISO File from a NAS or USB-HDD? If it did not work: I hope and pray that the new Apple TV 3rd Generation has got enough Power to do that… Does the AppleTV also has 4CoreGrafics like the “new iPad”?
No, it will not play bluray iso. And it really struggles with large .m2ts files.