last friday I purchased on Amazon a WD Mybook Live (2 TB). I hope to receive it tomorow. If you can wait a few days, I’ll give you my impressions. Hope this help you to take a decision.
I have a Time Capsule and I don’t believe you can use it as a NAS for hosting video files, I believe that it’s simply for Time Machine backups. So I would stray away from that as an option, IMO.
I have Seagate GoFlexHome NAS 2TB and it’s works flawlessly with my ATV Flash Black they are pretty inexpensive and once set up I have had ZERO issues with it. Read the setup, follow the instructions and you’re done. Lots of people have complained about them but I (as with all my electronics) take my time during setup and actually read and make sure I follow instructions correctly so I have minimal issues in the long run.
Sorry to resurrect an old thread, but I stumbled onto this via Search and thought additional information might help others.
I have to respectfully, but strongly disagree with Tim (tgriskus) above. The Apple Time Capsule works flawlessly with the AppleTV – they are both Apple products and made to work together. Regardless of whether you have a Mac or Windows-based network, it just works.