Originally Posted by halfelite
^^ what is the quality like? From what i understood it transcodes everything doesnt it? so its not outputing like 1080p and such.
I haven't played enough with it to answer the 1080p file issue. I don't have my iMac set at 1080p (()x900 or so). I was waiting for the Rowmote upgrade. I am pretty sure it is not transcoding and the display on the ATV certainly seemed higher than 720p.
I used both XBMC and Plex for playing a 720p file. I then played the same video on my new Sony GTV box. The Sony was slightly better but that doesn't mean much as it has an outstanding picture when up scaling to 1080p.
I was not using wireless though. Maybe that is where you saw the 720p limitation?
Apart from a tiny issue with Rowmote the whole process was uncanny. Much better than the jailbreaking route.
Until I get my new Mini there is one aspect of this that was hard to take. The iMac is in the same room as the TV and you can't just turn off the iMac's display. So you are getting "stereo" video which is annoying.
Nothing seems blocked by the process. It's as though the ATV is an external display, but with audio. Another strange thing is the ATV then works with the remote that is paired with the iMac even though the ATV is paired to a different remote.
I'll try a bunch of the Birds' video files later. Those are all 1080p.
Edit: I played a bunch of 1080p files via XBMC. They played as 1080p on the ATV3. I used bitrates of 40 mbps for the Birds' clips with no stuttering. Watched a couple of TV shows and noticed a couple of slight stutters, but hardly noticeable. We were really looking. Really very impressive, especially with Rowmote which handles launching everything.
Basically, this really is a fine replacement for a jailbroken ATV2. Way better in fact as XBMC on the ATV2 was never quite ok. It isn't for Windows' oriented users though. You have to be in the Apple world for it to all work nicely.