While Apple now sells an Apple TV with a 160 GB hard drive instead of the tiny 40 GB drive it originally sold with, for some people, it’s still not enough storage. Besides, the price difference between the two models is $100. Further, if you decide to perform the upgrade yourself, you’re still limited by the sizes of relatively expensive laptop drives. 3.5” drives are bigger and cheaper.
Apple TV Hacks has been tracking the progress of a hack that allows you to use an external USB drive for storage while using the internal drive for booting. Saturday, it finally landed. It’s geeky and not for the faint of heart, but once you’ve gone through all the steps (it doesn’t even require opening up your Apple TV), you’ll have a beefy drive.
There are some restrictions with the hack, like requiring 1.0 of the Apple TV software and an Intel Mac. That said, the guys over at Apple TV Hacks are looking for assistance in removing many of the restrictions.