Perhaps as an alternative.
Plug the Apple TV into a computer monitor. Then set the screen resolution to 720p to start with and save, then reconnect to the BV7. You call also try 576P and other resolutions.
See if any of these options work, is gets around the handshake issue.
Lastly I assume you have a DVI to HDMI adaptor on the BV7. Noting, this path is for the picture, not the sound.
Beoaus.