I was one of those who had a library of music and photos larger than my 40GB TV. So for me, I synced my photos, some playlists (till it was full) and then set up my computer for streaming as well. This way I could watch any of the movies or listen to all my music from the streamed computer (which is also my synced computer). The only problem was that switching between synced TV and streaming sources meant loading the streamed source which could take up to a minute to load the library. At first I was rather dismayed to see that with Take 2 it loaded the library separately for each type of media, music, tv show, movie, etc. Instead of choosing a source, you chose a media then a source. Then I discovered that I don't need to sync anything to my TV except photos. The rest of the drive can be used to leave room for rental movies. The reason is that as long as you do not check "Show only the synced items on Apple TV" under the summary selection for custom, then you do not need any of that content synced. I can stream music, tv shows, movies, podcasts, (anything but photos) from my synced TV/computer without having to set that computer up for streaming. Great new feature. All you have to do is leave iTunes running on that computer and make sure only the display goes to sleep. Not to mention if you keep your playlists in iTunes organized like I do by folders, those folders appear in the TV and you can drill down to the playlists inside. Now if we could just get purchased movies to appear by Genre, it would be a complete media server. Not to mention I would prefer to have the ability to buy movies, not just rent through the TV as I do in iTunes and have it sync back the movie just like it does for music.