ATV as a movie storage? How?

Here is what I am wanting to do, and don't know if it is possible. I am trying to backup all of my movie to an external drive, around 100 dvd's using handbrake. Once I get them in a ATV format, what is the best way for them to be fully integrated into ATV library.
Here is what I have:
Airport Extreme Base Station 802.11n
No desktop computer - only laptops
Apple TV (only if this will work)
Plasma TV
USB/FW External Storage - 750 gb
I do not yet have ATV, so please explain the details. Can I simply use my USB drive hooked up to my Airport Extreme Base Station and stream it that way?
Please advise.

First you unless they changed sometime with the new update, you need to have itunes running on a computer to stream to apple tv. Unless you are running only off of what you have on the apple tv itself. Here is my setup.
Lynksys Router
Western Digital Mybook World NAS
Old Dell Laptop Computer Running Itunes - always on my media server
My apple tv accesses all my content from the laptop, which points to all
my movies on the NAS drive. All of this is wired, I don't use wireless. My drive is a 1TB drive. Have never had problems streaming. All movies load within a sec or 2 and play without interuption. I actually left out that I have mutiple Mybooks connected and all work fine.

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