I wrote up a set of step-by-step instructions to go from an out-of-the-box Apple TV to a jailbroken one with Hulu-watching capability. This is current as of last night (January 7, 2012), using the latest version of SeasonPass, which allows an untethered jailbreak of Apple TV firmware version 4.4.4.
Perhaps some people might find the step-by-step instructions useful. See here:
http://dgalvan.blogspot.com/2012/01/jailbreaking-your-apple-tv-2-to-watch.html
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Or just see below:
1. Download and install the untethered Seasonpass Latest Version from
http://support.firecore.com/entries/387605. This is the software that will jailbreak your ATV, so that you can install non-Apple software on it. You can also read about this process to see what it does here:
http://blog.firecore.com/6434
2. Run Seasonpass and follow instructions at this site:
http://support.firecore.com/entries/387605
This may take 20 minutes or so. When you are done, read on below.
Your ATV is now jailbroken. (Dont worry, if you decide you want to go back to the original factory settings, you can always go to Restore in the Settings section of your Apple TV.)
3. Hook your ATV back up to your TV and make sure it can successfully connect to the internet/your network. You should see a temporary Firecore emblem in the lower right corner of the menu, indicating the unit was successfully jailbroken.
Now you want to install some software on your jailbroken ATV. This will require the use of the Terminal app on your mac to SSH into your ATV. For that youll need to know your ATVs IP address.
(***NOTE: For a GUI-based alternative to steps 4-9 below, you can purchase and install ATV-Flash Black, as suggested by CocoaPuffs in comment #22 below.)
4. On your Apple TV go to Settings --> General --> Network and note the IP address. Should be something similar to 192.168.0.186
5. Open the Terminal application on your mac and type the following:
ssh -l root 192.168.0.186 and hit return.
(Dont actually type the quotes, just whats inside them. And use the actual IP address of your particular ATV, which is likely different from the number I used above)
6. You will be asked for a password. Unless you have changed it, the default password is alpine. You are free to change this later if you wish, using the command passwd. But its not necessary.
7. Update apt sources - type apt-get update
8. Install NitoTV - type apt-get install com.nito.nitoTV
(NitoTV is a feature that allows you to easily install other programs on your ATV from the ATVs menu system, so you wont have to use the command line as much.)
9. Type killall AppleTV. This will restart the Apple TV menu system so you can see the new software (NitoTV) you just installed.
10. On your ATV, go to NitoTV and install XBMC, updatebegone, and openSSH. XBMC is the Xbox Media Center software which will allow you to watch Hulu. updatebegone stops the ATV from auto updating or nagging you about updating to the next Apple Firmware update, since you wont want to update the firmware until the next jailbreak update comes out. (Otherwise youd lose your jailbreak when updating to the next Apple firmware.) OpenSSH just makes it easier to install the Hulu plugin for XBMC later. (not completely sure that openSSH is necessary, but oh well)
XBMC has now been installed! But its not ready to stream Hulu just yet. . .
Now we need to install the bluecop repository, which is just a zip file containing add-ons that will augment XBMC and allow it to stream Hulu. You can see a post about this plugin, with instructions on how to install it, here:
http://www.appletvhacks.net/2011/03/02/how-to-watch-hulu-on-apple-tv-2/
If you are savvy enough with SFTP and the command line to follow the instructions at the link above, go for it and you are done! If you need a bit more explanation, see below.
11. Download the .zip file for the bluecop repository from the above link to your mac.
(***NOTE: For an alternative to steps 12-16 below, you can use a GUI-based FTP client like FileZilla instead of Terminal, as suggested by CocoaPuffs in comment #22 below.)
12. In the terminal application on your mac, exit out of the SSH session you started earlier with your ATV by typing exit. Then navigate to wherever the zip file you just downloaded is. For example, if the zip file went into your Downloads directory, you would type: cd and hit return to change directory to your home directory, and then cd Downloads (and hit return) to go to your Downloads directory. Make sure the zip file is in there by typing ls repository*. This will display the file (full name is repository.bluecop.xbmc-plugins.zip) if it is there. It will display nothing if you are in the wrong directory.
13. Type the following: sftp root@192.168.0.186 (again, use the correct IP address) This sets up a SFTP: secure file transfer protocol session which will allow you to transfer the zip file from your mac to the ATV.
14. Type cd /private/var/mobile/Media (this will change directory to a Media folder on the ATV where XBMC will know to look for this zip file.)
15. Type put repository.bluecop.xbmc-plugins.zip (this will actually transfer the zip file from your mac to the ATV)
16. Type quit to exit SFTP.
17. On the ATV, go to XBMC. Then go to System --> Add-ons --> Install from zip file
18. Browse to var/mobile/media (the folder where you put the zip file), find repository.bluecop.xbmc-plugins.zip and press OK (Bluecop is already enabled)
19. Go to System --> Add-ons --> get add-ons, find bluecop Add-on Repository click OK, choose video add-ons, find Hulu and install it. Note that after it is enabled, you can select the plugin again and select configure to enter your Hulu login information. Whether you are a HuluPlus subscriber or just a user of free Hulu, the login can be handy because it allows you to configure your subscriptions (which shows you like) on Hulu.com via a computer and web browser, and then you can conveniently access just those subscriptions in XBMC on the ATV, instead of having to search or browse through thousands of shows using the remote.
20. Finally, back out to the front XBMC main menu and go to Videos -> Video add-ons. Find Hulu and enjoy (should work with both regular Hulu and Hulu Plus).
At this point you should be able to watch free Hulu on XBMC on your ATV! Life now has meaning.