aTV (Silver) and Lion

I followed all the installation and video and have the aTV (Silver) set up as instructed.  iTunes on my OS X Lion new iMac sees the unit as a device (previously syncing with iTunes in Snow Leopard on a MacBook Pro) but won’t allow me to sync in the same fashion to which I am accustomed (automatic, custom, etc.).

aTV Flash is billed as adding loads of great features while retaining all of the Apple functionality… am I missing something?

Without the same sync capability, how do I remove content from the aTV HD?