Edit: found a fix from westont on AwkwardTV:

Sure enough, looking in the /System/Library/QuickTime folder I found a ‘Disabled’ folder had been created. This folder contained the ‘QuickTimeH264.component’ file which had clearly been moved there by something. Moving this file back to the /System/Library/QuickTime folder and rebooting the ATV got everything working again.

The server ususally runs “motion”. I disable motion, and launch this command on the server:

vlc v4l:/dev/video0:size=640×480:channel=1:norm=ntsc:fps=12 –sout ‘#transcode{vcodec=mp4v,vb=768,scale=1}:duplicate{dst=std{access=mmsh,mux=asfh,dst=:8080}}’ -v –noaudio

and this on a Linux client to test:

mmsh://10.4.4.25:8081/

Then, once that is all working, I use VLC on the AppleTV to play the video to the TV. I used iScripts to get it launching.

The only problem I have right now is a 8 or so second delay.

You have to copy PreferencePanes.framework from your Tiger disks. Copy them to /System/Library/Frameworks/

This is going to lead the way to me getting the Ethernet port sharing Internet over to the XBOX. So I can get rid of the extra unneeded WiFi box under the TV.

Factory Restore
Mine factory restores back to 2.0.1

Optionally Update to AppleTV version 2.2
When I attempted upgrade to 2.2, I lost the ability to mount external USB. I have since reverted to 2.0.1. I’d like to get back to 2.1 somehow.
Edit: Nito showed me how: Howto Upgrade to 2.1

Use the Patchstick
This USB Patchstick enables SSH on the AppleTV and also does some kernel patches.
(TODO: link needed to USB file)
Edit: Check out atv-usb creator here

Connect to SSH
Test that SSH is working. Exchange ssh keys for easier logins

Upload NitoTV via SCP.
scp nito056 frontrow@AppleTV.local

Run the NitoTV installer
ssh to the AppleTV. change dir into the nito folder and run the installer with sudo privileges or as root

Upload ~/Documents via SCP
Here, some important disk images need to appear in order for NitoTV’s Smart Installer to work. Smart installer is a script within NitoTV which installs 50+ mods/patches that you definitely want working.
The disk image file names are:
MacOSXUpdCombo10.4.9Intel.dmg
recovery.dmg
(TODO: links)

Run Nito Install Software
Up to this point, all of these things are done on your PC or via SSH on the AppleTV. Now is where you switch over to your AppleTV remote. You should have NitoTV on your AppleTV main menu now. Go over there and run it.

We’re going to run Install Software from within NitoTV. I think the option is somewhere down in Settings. Run Perian install. Run mplayer codec install. Run Smart Installer.

At this point, AFP file sharing, External USB Disks and all media codecs should be set up. You’re pretty much fully modded. After this point are just extra nice stuff.

Enable VNC
http://wiki.awkwardtv.org/wiki/index.php?title=Enable_Remote_Desktop_(VNC)

Disable Updates
sudo bash -c 'echo "127.0.0.1 mesu.apple.com" >> /etc/hosts'

Install Firefox

http://wiki.awkwardtv.org/wiki/Firefox

Install vim

http://wiki.awkwardtv.org/wiki/Install_SU_and_VI

Install Boxee

http://howto.wired.com/wiki/Hack_Your_Apple_TV_With_Boxee

Install Flash

http://www.applecorellc.com/forum/viewtopic.php?f=10&t=53

Install XBMC (failed)

http://xbmc.org/forum/showthread.php?t=37345

General Modding Snippets

Mount drive as Read/Write
root@appletv# mount -o remount,rw /dev/disk0s3 /

General Links

http://wiki.awkwardtv.org/wiki/Take_2_Full_Update

This link has a lot of general purpose low level AppleTV modding information. However, do not follow it step by step. Nito has done most of this work for you and it is much easier to use NitoTV to do all these mods automatically.

Flash Installed (can watch Hulu)

Firefox Installed

VNC working