I purchased the ATV Flash software and yes you do have to be fairly dogged in your pursuit of satisfaction. It is a learning process but you can wring all the features from the product with enough persistence.
But I digress… I was able to get the USB external drive to mount and NITOTV to work but all my carefully prepared Video_TS folders on the USB drive would either play only blank screens, Flash the Apple Logo, or just play the audio with no picture and then they would sometimes work. I tried changing a variety of settings which seemed to have little effect on the the ability of these Video_TS folders to playback. I was about to reinstall everything and start from scratch when…
I discovered that by changing the video resolution from 1080P in the Apple TV to 1080i each and every Video_TS folder would playback perfectly. I tried 480P as well (but the quality sucked) and that worked too. 720P did not work as well.
Now just so you know my LCD TV has an auto detect feature that may play into this. I suspect many TVs do this as well. I have been reading the forum posts of people that have problems getting their Video_TS folders to play and they were identical to mine. All problems cleared up when I switched the resolution on my Apple TV to 1080i. It may be that the TV set becomes confused at certain resolutions when you try and playback a Video_TS folder from within NITOTV. Or it may be that the HDMI cable does something wierd to 1080P playback only. I really don’t know but changing the settings worked for me. Someone may also try using component video cables instead of HDMI to see if that has any effect. For me 1080i worked with my standard HDMI cable.
So to recap…
1.Set your video resolution to 1080i in your Apple TV
2. Just navigate in the menu via remote to NitoTV-files-yourexternalusbdrive-yourmovietitle
3. Running ATV Flash 3.4.3 and Apple TV 2.3
and you should be good to go.