I'm wondering if anyone has Apple TV and what they think of it. Thinking about buying it for our system downstairs.

Can you be more specific on what you'd like to use it for?

It takes the same space as a Mac Mini and is about 1/100th as useful. But some people love it.

one review i've read said to buy a X-Box 360 instead. more functionality, less price

I don't have an Apple TV, when I was looking for a media device I settled on the Linksys Media Extender. The media extender's now appear to be going defunct although I have used mine quit a bit it isn't perfect and doesn't play all formats. I don't know what the perfect solution is, I like the popcorn hour (www.popcornhour.com) box based on my reading reviews and the forums. At least it seems well supported and continues to have updates.

My AppleTV is hacked to play all sorts of video files - even Boxee and HuLu.

If you use iTunes and the iTunes music/video store, then AppleTV can be a nice way to access your media. Basically, it's the only easy way to access and play iTunes FairPlay DRM material with a media center device. It can also playback Apple Lossless Audio encoded music tracks if you have used that format to rip into iTunes. If you have an iPhone or iPod touch, you can also get a free app from apple that gives you a cool touchscreen remote control with songlists onscreen, etc. It will also access your iPhoto and Aperture photo libraries to display on TV.

But, for playing back other random media formats, photos not in iPhoto, etc. it doesn't do that well. But hacking it for Boxee will open that up for you.

Also, it only outputs 720p if that is an issue.