Currently I have a variety of content (dvd, dvix, xvid, mkv) and they're spread all over the place (various PCs, burned cds/dvds). I'm looking for a solution to put all the media at one place, have it be automatically backed up and watch it anywhere. I have an iMac, PS3 and 52" 1080p lcd right now. In the near future I want to replace the iMac with a Macbook Pro. I'll also be getting a 1 TB external usb drive, Time Capsule and Apple TV. I wish the MBP had a 1 TB drive so i dont have to carry the usb drive everywhere. From reading the threads here it seems like most of the ppl convert and put all media on external drive and let iTunes reference it. Have a few questions regarding this: 1. If iTunes is referencing media on an external drive then will time machine also follow that reference and back it up as well? 2. Is it worth it to convert media to be both Apple TV and iPhone compatible? How would iPhone compatible look on a 52" lcd? 3. Some of my divx/xvids have ac3. Is there any way to perserve/convert ac3 so that when played on Apple TV my receiver gets a surround sound signal (DD 5.1/DTS, no Dolby Prologic II) ? 4. Can I just take the MBP, usb drive, apple tv to my friend's place and connect it to another tv and have it all work? Will it work even if there is no wireless network? Can the MBP and apple tv wirelessly connect with each other? 5. How do I share my media? Can I just burn the mp4/m4v files on a dvd and others can watch them on iTunes? 6. Should I start the conversion process now or wait for a bit till the apple tv's get updated with the new version? 7. I'm thinking of using the PS3 for blu-ray. Is apple tv hackable for 1080p? Or it's a hardware limitation? Are there any solutions for blu-ray media on apple tv? 8. If I use Visual Hub to convert divx/xvid will I end up with files larger than the original? How about the quality? 9. Is this a good solution? Having photos + music on MBP and videos on external. Is there any way to remove the external drive to simplify it so that with just the MBP and apple tv i can watch all my media on MBP or on a regular tv thru apple tv?