What happens when you have a 40GB Apple TV and a 80gb itunes Library?

Sorry, couldnt find the answer to this. Have a large library, and wanting to sync to new apple tv.
What happens, do I only get a parcial library showing up in Apple TV?

Even though tv is a remote network device, it shows up in iTunes just like a locally connected iPod or iPhone.
From the iTunes library (of the computer hosting your media) the summary page displays a message that iTunes will sync to the tv in the order: movies, then tv shows, then music, then podcasts, then photos.
It will copy as much as it can fit. OR you can go to each of the tabs (in iTunes after having selected the tv device) and pick which movies, music, photos, etc. that you'd like to copy.
As an alternative, on the tv itself, there's a 'Source' menu. In addition to the content locally sync'd into the tv, it'll also display any iTunes library on your network, but the computer must be running iTunes and iTunes must have sharing enabled.
If the tv is connected via a fairly fast network then live streaming from another computer is no problem. It will "work" with 802.11g wireless - but I noticed back when I used to run it this way that if I told iTunes to 'sync' to the tv it would take a very very long time to complete. So long, in fact, that I used to just do this over-night while I sleep. I think that it suspends syncing if I play a movie (at least if it isn't suspended, it's making such slow progress that I can't notice it). BUT... the tv does support both 802.11n wireless as well as 1000baseT (gigabit) wired networking. If you connect via either of these methods (esp. the gigabit wired), a full-sync will take mere minutes to do your whole hard-drive. It's amazingly fast. So streaming movies from another computer (instead of copying them locally into the tv) is no problem at all.

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