Considering an Apple TV

I'm really considering an Apple TV, but I have a lot of questions. Can I stream these movies to my Apple TV as long as I use a supported encoding format? How does Apple TV handle streaming from my computer? Does it have to load the entire movie, or will it start playing as soon as it has enough of a buffer? Will it pass all new forms of digital audio including the stuff from Dolby and DTS through the Optical or HDMI ports?
I like the price and I really like the design, I just need to make sure this thing will do everything I need.
< Edited by Host >

mightymilk wrote:
I'm really considering an Apple TV, but I have a lot of questions. Most importantly, I backup a lot of my movies (DVD's and Blu-rays) to my hard-disk. Can I stream these movies to my Apple TV as long as I use a supported encoding format?
The tv will not play DVD's or other disks from your mac/pc optical drive. Video/audio needs to be part of your itunes library in one of the supported formats.
http://www.apple.com/appletv/specs.html
How does Apple TV handle streaming from my computer? Does it have to load the entire movie, or will it start playing as soon as it has enough of a buffer?
The tv handles streaming very well generally, all of my tv's are set up to stream 99% of my content. Video/Audio commences to play within a few seconds of selecting it.
Will it pass all new forms of digital audio including the stuff from Dolby and DTS through the Optical or HDMI ports?
Stereo, mixdown or dolby digital only. DTS is not supported.

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