I have both, and its working well. I have 2 160GB ATV's, I got a 2nd one when they went on sale for 149.00 at best buy with the hopes of keeping video on one and audio on the other in 2 different rooms and have them see each other, but I havent figured that one out yet so far. I was using my itouch to load with kids shows for my son to watch on a little tv so I was not forced to watch dora, diego, and blues clues any longer. I decided that 99 bucks was a good price for me to get my itouch back, and got the new atv for his tv. its kind of a pain to keep the computer on to steam his shows from it, but not terrible. my plan at some point is to get a mac mini and move all audio and video content to it, so I can stream/sync from it and not have to tie up my imac logged into my account all of the time.
if anyone has got 2 160gb apple tv's to share content without being connected to itunes on a computer in a shared library, I would love to hear how you set it up.