Someone might have covered this before, but here goes. I'm new to whole Apple TV and need some clarification on some things.

My setup in the Media Room is 77" screen, receiver etc....was thinking of buying/building a Media Center PC, connecting to cable box for live TV, but most important running Media Center with my movie collection on 1TB drive. Tested using a friends system and all worked well. Downloaded a plug in for Media Center that displays the DVD cover, and pulls data about who stars in the movie etc.....have approx 150 movies of my DVD;s backed up in AVI/DIVX format.

Question

1. I know that the AVI and DIVX movies have to be converted for use on Apple TV - right? Using something like Visualhub

2. Can I add my own DVD covers to the movie collection on Apple TV so they display on my Media Room screen and can be selected

3. Apple TV is 160gb. Can you add an external drive to the system via the USB port on the back?

4. Once the movies are loaded, does the Apple TV need to be permanently connected to Itunes?

5. Any other suggestions for the ultimate setup?

Thanks in advance
Alan

Nevermind, got some good ideas from the forum and all is working well Thanks