I decided not to wait for any possible Apple TV hardware update and buy one of the current 160GB units. I only recently stumbled onto aTV Flash and it looks impressive. One of my reasons for holding back on the Apple TV was the size of the HD. Use of aTV Flash with a large external drive is one of the big reasons for buying the Apple TV now (I want the Apple TV media available at all times without having to have my computer on.).
My newbee question: if I configure the external HD as SECONDARY and place my iTunes folder on the internal HD, can I store my iPhoto library and all my movies on the external drive? Sorry, but I’m a little confused about the term “non-iTunes media”! My hope is that the internal drive with the external drive would operate as the equivalent of one big HD. If this is not the case, and I need to configure the external HD as PRIMARY, what needs to be on the internal drive, if anything? My primary use of the Apple TV is to listen to iTunes music, view iPhoto pictures and slideshows, and watch movies currently on my computer.