Terrible picture on ATV with new Harry Potter

[x166532x]

I used the new ATV preset on HB 0.9.4 and put the Constant Quality setting at 70.10% (or 15.25 RF) and the movie went from 6.75GB in ISO to 2.22GB in M4V... and the picture is horrible. I usually notice anywhere from a 20 to 40 percent decrease in file size, but almost 70% seems drastic.
Very blocky, compression errors - blacks are crushed. Any ideas why this is. It seems that animation has always looked this way too.

Other settings include decomb on default and anamorphic on loose.

The reason I go as high as 75% on encodes is the playback on my 58" plasma is pretty poor with the lower settings.
My ATV is competing against my Rotel RDV1092 scaling DVD player --- needless to say the ATV doesn't win very often.

Any input would be appreciated.
Thanks.

[Deleted User 11865]

No Activity Log, no support (see the red banner at the top of every forum). Locking.