I convert DVD's to MKV then to m4v using Handbreak They are stored on a WD Ext HD using USB My router is a Netgear N600 using wireless N to the ATV2 Distance from router to ATV is about 25 feet (getting full 5 bars) My server is an old eMac G4 1.25 Ghz with 1GB ram and USB 1.1 The OS is 10.5.8 and iTunes 10.5.2 It is attached to the router via network cable. Netflix works great for me no real problems. I do have one annoying issue with DVDs that are on the server playing through iTunes. I will start up a movie and it takes anywhere from 12 to 30 seconds to start which I can live with but I get what appears to be a buffering pause after about 40 seconds from the start of the movie which lasts for about 10 to 15 seconds then playback is fine. it happens on pretty much every movie. My first thought was to switch to cat 5 cable from router to ATV2 thinking it was a wireless issue, but that did not help. I know my eMac is a little long in the tooth and may not be up to the task but except for this issue it has worked great. I am not totally convinced that it is a hardware issue but I am open to that. Is USB 1.1 on the eMac acting as a choke point that is causing this? Is it a setting in iTunes that has to do with buffering?