Originally Posted by Pestilence
Does the AppleTV2 have a hard drive or do you have an external one hooked up to it?
The ATV2 has a HD, but not large enough to use for media storage by any means. I have several NAS that I use for storage and such. But honestly, these days I stream much more than I download. Everything is available to me for direct streaming anytime. Literally any TV show or movie. So I don't really download much these days other than my absolute favorite stuff.
If you're looking to start out now though, I would really recommend one of the Android boxes as opposed to an AppleTV2. The AppleTV must be jailbroken to run XBMC. The new AppleTV3 can't be jailbroken at this time. So the prices of the older ATV2 have gone through the roof(~$200). And the ATV2 is starting to show it's age, as the XBMC platform continues to grow. Processing power can't handle more than 720p streaming. Android boxes can stream full 1080p as long as you have sufficient bandwidth. Hell, you can get a Raspberry pi for ~$75 that can run everything and stream at 1080p now.
In addition, you can also run XBMC on any Windows/Mac computer. It can run on any platform, Win, Mac, Linux, OpenELEC, etc.