I think you should post this in the apple TV forum because you may get more responses.
Well with ATV you can only play content you have bought or rented from Itunes or content I. Mp4/mkv format. Think of it like a jukebox. You can also access YouTube, podcasts, and your own pictures to make a slideshow.
Now, if u hack it with Boxee (
http://www.boxee.tv), which is awesome, you will be able to play just about ANY type of video file not just mp4. Great for torrents or your own homevideos. You will also be able to play TV shows FREE from Comedy Central, CBS, and Hulu. There are tons of free TV shows.
For me, The only place ATV lacks is for sporting events. So I am ditching cable after football season. Over the air just won't cut it for me.
Apple TV is just awesome it's doing a lot more than I expected.
