ATV3 and judder

[Frank16]

I just got my Apple TV 3 and all video content I've downloaded directly from itunes and stream from my computer looks amazing. But when I play anything I've encoded myself I get a very noticeable amount of judder. I have a 5 year old plasma LG 42PC5DC and there are very few video options except to play the picture in 3:2 cinema mode, which is only achievable if my cable box is hooked up through composites. I tried it and the judder on self-encoded content my ATV was gone, but the picture for regular live TV looked terrible when hooked up through anything but an HDMI port. So keeping my tv on cinema mode isn't really an option.
So I went and tried my ATV on my slightly over 1 year old LG 32LD550. all my own encoded content from my computer played beautifully without any judder.
So I thought I'd narrowed the problem down--it's my old TV and its older processor. But then why does everything I've purchased via itunes look flawless without any judder on my old tv? yet on the same tv my self-encoded material has a lot of judder?
If anyone has any insight to this I'd greatly appreciate it.

[kornchild2002]

I'm willing to bet it has something to do with the encoding settings you are using. I have content that I encoded on my Mac, iPad 3, and iPhone 5 that I have played on both my Apple TV 2 (2010) and Apple TV 2 (2012). Each Apple TV unit is able to display content appropriately yet each TV set and Apple TV unit is different. My Apple TV 2 (2010) is hooked up to my bedroom TV which is at 720p and 60Hz and my Apple TV 2 (2012) is hooked up to my 120Hz LED 1080p HDTV. Both TVs and Apple TV models produce smooth videos of content I encode myself yet I use the same source (DVD) and settings when encoding content.

What program and settings are you using to encode your own content. Make sure you include video bitrate, kind, container, framerate, along with the specs and settings of both HDTVS.