Apple TV Nubie Confused

So many questions - where to start...
All questions relate to movie rental from the iTunes portal
1) Does ATV start playing a movie before it is completly downloaded?
2) How many movies can ATV store?
3) Will the multi-function round direction switch allow reversing and going forward while watching a movie?
4) How to properly pause a movie? My experience with pausing using the select button did in fact stop the movie but it required another download (5+ hrs) before it was ready to play again. ATV did give the option of starting from the first or returning to the paused site.
5) ATV shows that my unit has the latest software installed. Where/how does one find the build model of the latest software to confirm?
6) How does one tell ATV from ATV2?
TIA for your help.
Bill

Welcome to the Apple Community.
Yes before it's fully downloaded, but not until it has downloaded enough to play without stopping.
It can't actually store any, it can fit a full movie on it's flash storage but will delete it when you watch something else.
Yes you have 3 forward and 3 reverse speeds and you can also jump a chapter or multiple chapters.
Use the pause button (feeze frame)
That info is on the Apple website, but if you are connected to the internet it will always tell you if you are up to date and remind you when new software is available.
The first Apple TV was white/grey, the new one is black.

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