How does Remote work with Apple TV?

How does Remote work with Apple TV?
1. Does Remote, "Play" the music that resides on your iPod Touch>Apple TV>Home Speakers.
OR
Does Remote "Control" the music that resides on Apple TV HD>Home Speakers.
(If so... say you have a iPod Touch that only holds 8GB's but your music collection on your Apple TV exceeds that amount.
Will Remote still "Control" the larger music collection on Apple TV or your computer?)
2. Will iPod Wifi work on a patio outside a home to control Apple TV inside the home?
thank you in advance, Tom

Remote is a way to control iTunes on either your computer or Apple TV using a WiFi connection. See this article for complete instructions.

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