Cave Man, could you explain how to do that, or post a link?
It's somewhere in the "My 750 gb Apple TV" thread that I talked about it. But basically, here's how it's done:
1. Pull the ATV drive and connect it by USB or FW to your Mac. I use a universal drive adapter for this (PATA interface).
2. Two partitions should mount - OSBoot and Media.
3. Launch Disc Utility and select the OSBoot partition (NOT THE DRIVE, just the partition) and erase it.
4. Click on the Restore tab of Disc Utility and drag and drop the OSBoot partition to Destination.
5. Drag and drop the ATV disk image that you downloaded from the link in my previous post to Source.
6. Click Restore and you're done in about a minute.
7. Replace your drive into your ATV and boot.