It's probably a good idea to point out to the OP that the
TV can only play iTunes Library video content that meets the
TV's specific criteria. See the section titled "Video formats supported" on the
Apple TV's Spec page.
If your movies meet these criteria, or if you're willing to convert them to a format that does, the
TV works great. Plus, it has a lot of other nice features, including video rental/purchase, internet content (YouTube, Flickr, etc), and it can be used to browse and play your iTunes music library (and be used as an AirTunes target).