Well I just got an AppleTV and a Toshiba 1080p 42" TV. And So far, its cool but slow. The syncing from my computer to the AppleTV over a 802.11b wireless connection. Now I know that I should have a 802.11g connection, but I'm kind of sharing a wireless connection in the new condo building I just moved. Hopefully when I get my 802.11g setup, everything should be much better.
Now I have been able to stream podcasts and tv shows from my computer to the AppleTV, and I have to say it works nicely. The podcasts are 720p, so the picture is wonderful. The TV shows are just 480, so when up scaled to 1080, they look ok. I hope tonight I can watch all my Heros episodes that I have downloaded from iTunes.
Now I have watched some DVDs that I have ripped and streamed from my computer. They look really great. Even though the content is still 480, it is really clear since encoding the video into h.264 at a real high bit rate.
Well I am going to keep watching, and I will let everyone know if my opinion changes.