Can the ATV2 play .wtv files from Windows Media Center without conversion to dvr-ms?
Sorry, .wtv files are not currently supported.
I would answer it this way, technically the Apple TV2 can play recorded TV from Windows 7 Media Centre (.wtv files). I can do it through XBMC, but not using the Media Player provided by fireCore. I have found that standard definition .wtv files play fine, but High Definition (OTA 1080p) .wtv files choke the ATV2 processor. Not enough CPU horsepower I assume.
Look for an application called MCEBUDDY. It converts the WTV files to M4V or MP4 files automatically in the background. Have it set up on my workstation and it runs great. make take an extra half hour between showtime and watch time, but does work.
I recommend avdshare VideoGo which can convert WTV to MP4, it also can convert WTV to AVI, WMV, MPG, MOV, MKV, VOB, OGV, FLV, RMVB, ASF adn etc.