GWG

I almost bought one yesterday to replace the old ATV. Guess I will hang on to it.

According to to weakness.com, 320 GB is the largest HD you can put in the ATV. That will hold more than 1,000 CDs in Apple Lossless format. I have heard of DYI kits that are larger but I would be wary of them. Upgrading the HD has no effect on the software updates. I am not positive, but I don't think that is the case with the software hacks like Flash.

I have an ATV that I picked up from Ebay and have been very happy with it as a music server. At first I just used it through a Yamaha A/V receiver but later added a Benchmark HDR DAC (which I highly recommend). I use the optical output from the ATV to the DAC. I prefer to sync content as I've had problems with drop outs, but you may have a different experience. There are options of adding a larger HD to the ATV (320GB from weaknees.com for around $200). If you go this route get a cheap 40GB model and have the drive upgraded. Some say the sound of the ATV is not as good as a mac mini, but for the price and ease of use I think the ATV is hard to beat.