Ripped BluRay 1080P .m2ts stream plays choppy

Hi All,
Have AppleTV 40GB running aTV4.04, connected via Cisco Gigabit to NEW MacMini Server (No Disc Drive) via FireWire 800 to Drobo with 4.5TB of free space. I have ripped all of my DVD’s as native (no Compression) Video_TS folder onto the Drobo, and use Macmini as file server. I use XBMC and the AppleTV streams 480i beautifully with NO problems. However, my problem / question is when I try to stream native un-compressed 1080P BluRay (.m2ts) file, the video is SO CHOPPY. Like 1 frame each second, it is really bad, not watchable at all. My question is what is the bottleneck? This appears to be a bandwidth issue, because 480i DVD’s play no problem. Is the 10/100 card on the AppleTV the issue? Does the AppleTV video card not handle 1080P? I am assuming this is a hardware limitation? If the APPLETV cannot handle this, do you have any suggestions of media streamers that can? Thanks Colin

The max resolution the AppleTV will currently support is 720p.

I was able to get these files to play with a bluray player, the lg bp390 has a usb port on the front, and i plugged an ipod into it to play to .m2ts movies. the aTV is way too underpowered to handle it.

CrystalHD and XBMC will play them.