They are setting the stage for their own TV, all it is is time now. It's coming.

Those interface improvements may be in your head however.

Just wish I could download the update. I've been checking for two weeks (hoping Apple might have snuck an update in), and even this morning I'm getting, "Apple TV can't check right now. Try again later." This, even though I can still access the store.

I don't know if it's got anything to do with the fact that it's been ATVFlashed or not, but I thought their hacks were supposed to allow all existing functionality (including updates) to be intact.

Alongside iTunes 8.0.1 late Thursday evening, Apple also released Apple TV 2.2, a new version of its set-top-box software that delivers support for purchasing and downloading HD television shows as well as support for the new iTunes Genius feature.

In a support document that was briefly posted to its website (but since removed), Apple said the update also addressed a couple of security issues, such as unexpected application termination or arbitrary code execution when viewing a maliciously crafted movie file. A similar issue having to do with malicious PICT image files was also said to have been fixed.

In terms of new features, Apple TV 2.2 now lets users purchase and download HD television shows directly from the media hub, most of which are priced at $2.99. Previously, Apple TV only included support for browsing the iTunes Store's collection of standard definition shows.

Support for the Genius recommendation engine introduced last month alongside new iPods and iTunes 8 is also baked in. Holding down the menu button on the Apple TV remote while a song is playing -- or while on the Now Playing screen -- will present options for Start Genius or Add To On-The-Go. Genius playlists are visible under a sub-menu of Apple TV's "My Music" menu.

Separately, AppleInsider forum members have located a "Standby" option introduced with the new software, as well as several other interface tweaks to components such as YouTube and the photo browser.

Finally this update fixed one major issue for me. Some movies from the iTunes store such as Hacking Democracy would not decode properly and play a green corrupt video! The sound played fine but the video was corrupt, the same video would play fine in my iTunes app on my Mac. This same problem also affected some video podcasts such as some shows in TEDTalks.

It was driving me nuts, but now it's all good and I'm er

Apple TV Junkie is reporting that playlists created in iTunes containing music videos are now supported.

so can we look at photos in a grid view now or is it still just slide show only. also does anyone know how to create a genius play list on the ATV?