DVD collection, ATV?, Time Capsule, Advice what to buy?

Hello all.
I am brand spanking new in here and spent the better part of an evening searching through the forums for help. I did not find much, so I have opted for posting a thread in here. Allot of you seem to like to help, here's your chance..;-)
To start simply; I want to be able to rip all my DVD's to a big HD and stream to my TV. Question?
1. Buy a 1 TB time capsule + ATV and stream to my TV.
2. Buy a 1 TB time capsule and stream via my Itunes / Laptop / Wifi.
3. Third option...your suggestions.
I know the information is limited, but I would like your input before I post follow up questions.
Look forwards to your replies and help.
Thanks Sittingduck2nd

Sittingduck2nd wrote:
Well thank you for all your comments. Lots of information to chew on.
Yes I am aware of all the formats supported. So this has been taken into account.
I know the conversion process is time consuming, but hey that's what the night is for.
I agree you can run the conversions overnight or when you're at work etc, and even though it takes a while to convert files you can't watch more than 1 at the same time, so if you start with things you're liklely to watch soon rather than things you've seen recently...you get the drift..
But I am only trying to find a hardware solution that is the simplest as well as affordable.
So a followup question could be; can I attach a Ex.HD to my ATV and then access it that way via my laptop/Itunes?
Just to clarify - do you have a wired/wireless router or just the laptop and say a USB modem?
AppleTV really needs it's own connection to a router for internet authorisations etc - you might get away with internet connection sharing via the laptop but i've never tried that.
I believe I have to setup my itunes to see that storage location to access it. But again I am not sure.
Yes - you add things to iTunes - the files can either just be referenced in the iTunes library an dlive in a number of locations or they can all be copied into your iTunes library folder depending on iTunes preferences. Best solution for me is an external USB drive connected to my iMac which is the library location and holds a copy of anything I to it - you can mix and match some files referenced some files copied if you like.
I'd urge you to go down the external USB drive route connected to the Vista machine if possible, as although NAS drives work, it's all very hit and miss if your network is slow/flaky because the data path from file location to iTunes to AppleTv across the network is generally slower/more complex. AppleTV cannot use external storage via USB - diagnostic port only.
It might be worth considering the larger AppleTV if mainly running from a laptop so at least a good proportion of stuff is available if the laptop is elsewhere - depends on domestic arrangements really eg who else will use, how often is laptop away from house etc etc
Also - a final note - I wouldn't buy an AppleTV new until at least this time next week - there's expected to be a product launch for new ipods (there's an Apple Event anyway) next Tuesday. I'd be surprised if AppleTV is updated but you never know as it's 18 months old or more now.
If looking for a cheap solution you might want to kee an eye on the Apple refurb store where occasionally AppleTVs can be picked up refurbished for about £135 for the 40GB with a year's warranty.
AC

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