The new features added in the aTv Flash 1.2 and mentioned on their website including video zoom, quick access to previously visited pages, grid view watched icon, support for subtitle, bug fixes.
You will find three options added in the Zoom, like normal, stretch and crop which make you able to select on how your videos displayed. Video can be displayed by its native format like pillar box or widescreen or instead cropping or stretching to fill the entire screen.
You want this, huh? Then visit their official website to download aTV Flash (black)1.2 here. Or currently running the tool on your Apple TV, then go to Manage Plugins menu in Maintenance area to update your existing version to this version.