Steve Jobs said that the Apple TV failed to meet expectations - although “techie” oriented folks such as us were more than pleased with the way it quickly interfaced with iTunes and our home network. But certainly not being able to access the Internet directly other than to watch YouTube was oft-putting, as was the cost for the 40 Gigabyte model (providing roughly 32GB’s of space for use) and how it was tied to a computer and iTunes for use.

But Jobs doesn’t just whine, he delivers, and the results produced the Apple TV Take Two - a reworking of the idea behind the Apple TV which is about movies - and which is now all about renting them. Renting does not just come from Disney or some Indie studio, but all of the major ones - matching easily those other online services which limit theirs to computers only. Apple TV rentals don’t leave out being able to be viewed on computers or iPods either (with the exception of high-def; more on this later), so it makes sense that the entire user interface has undergone significant changes to match that of the underlying philosophy now being put into play. And while Apple has also dropped the price of their two models (the other features a 160GB drive), they allowed those of us who bought into the Apple TV about a year ago to update into all of this through a free download.

Now before we do the update, let’s consider what the Apple TV is all about. When it first appeared, it was all about integrating with iTunes on your computer so that you could transfer content either wired or wirelessly from it through the Apple TV to your HDTV. By definition this required a Component output on the APPLE TV at the mini-mum for video up to 1080i resolution, with audio transferred through the RCA analog plugs or the optical out (in stereo only), or the HDMI output could be used to transmit both video and audio. The other connectors consisted of an Ethernet plug to connect to the home network (using 10/100 base) and the Internet or you could use the built-in wireless (being the faster 802.11n if you had it, or the slower 802.11b/g). There was also a security slot and a USB port which didn’t do anything (and still doesn’t). The Apple TV has a price tag of $229 USD for the 40GB version or $329 for the 160GB.

Please check out our seperate Apple TV heat test using an ifrared camera!

*Editors Notes - 4/7/08 - This review has been updated and the score raised to reflect version 2.1 of the Apple TV firmware. User reviews posted prior to today's date reflect their experience with the earlier versions of the Apple TV. You can view reviewed software update on Page 2 of the review.

*Editor Notes - 3/28/07 - We replaced our test unit with another and did not experience poor HDMI quality on the second unit. It appears to have been an isolated case. If you have experienced heat or HDMI quality issues, please post in our forums for others to read.