FYI, the latest version of nitoTV (0.5.6) features some great improvements to Video_TS playback. It requires the Smart Installer to be ran, even if it was previously ran, to benefit from the new features, but playback is much improved.
- Update to aTV Flash 3.3.1
- Run smart installer as described (http://forum.atvflash.com/viewtopic.php?f=10&t=151)
- Change DVD > Settings > Playback Mode to Quicktime.