By the way, between the various plugins developed by the community of XBMC and the fact that none of the original ATV functions is altered, jailbreaking ATV2 is an absolute must!
FYI, there is an alternative to the long list of steps and typing in all that command lines. . .
Thanks very much for posting this CocoaPuff! I would endorse these alternate steps as an option for anyone who is not comfortable using the Terminal command line.
I'll just make two comments:
1. Purchase and download aTV Flash: http://firecore.com/atvflash-black
2. Run the self-installing .dmg file that will upload and install necessary files that enable a new menu on your ATV2 called "Maintenance."
3. Under Maintenance, installing nitoTV and XBMC (plus several other apps) is as easy as click-and-go.
This would replace Steps 4-9 of my original post. Note, though, that ATV-Flash Black costs $30. Without the verbose explanations in my original post, the following set of 5 commands are what you would be avoiding by purchasing ATV-Flash black:
ssh l root 192.168.0.186 (using your specific IP address)
(enter password: "alpine")
apt-get update
apt-get install com.nito.nitoTV
killall AppleTV
ATV-Flash Black does this for you using a GUI installer instead of making you type terminal commands. Either method works, of course, but typing those 5 terminal commands is free, whereas ATV-Flash Black is not. Frankly, if installing XBMC without using the command line is the only reason the user is considering ATV-Flash Black, then I'd advocate trying the Terminal commands before paying the $30.
That said, there are other reasons one might want to purchase ATV-Flash Black: it installs a Web browser on your Apple TV, allowing you to visit websites using your remote (though it still won't play online Flash videos). It also provides a Media Player ATV application that allows you to access your remote non-iTunes content (and DVD rips) easily in a more native-looking Apple TV interface. Basically providing XBMC or Plex-like functionality with a standard ATV interface. (I haven't used ATV-Flash Black myself).
Next - Add bluecop repository to XBMC. Instead of command lines through Terminal, you can follow the alternative steps below:
4. Download a copy of free FTP software called FileZilla.
5. Load up FileZilla, select Site Manager under File, and add a New Site.
6. Enter the LAN IP address in Host, select SFTP as Servertype, enter "root" as user and "alpine" as password, and connect.
7. Copy and paste: /private/var/mobile/Media into "Remote site:" box, press enter and it will take you directly to the necessary folder.
8. Drag and drop the bluecop repository from "Local site" into the folder.
Then follow directions from 17 and onward.
This would replace steps 12-16 of my original post. This is probably an easier procedure all-around than what I posted (unless someone simply prefers to use the command line). I'll make a note referring people to your post in my original post.