"Look for Apple TV" preference doesn't appear to work

Have just set up Apple TV for a friend, without realising the HD is only 40gb. As a result his music and photos have instantly filled the HD and it seems to be constantly trying to sync (or at least the spinning arrows beside the Apple TV in the devices list won't go away)
To solve the problem until I next get over there, I suggested he merely uncheck "look for Apple TVs" in his iTunes preferences, but the TV still comes up under the list of devices every time he opens iTunes. I have also got him to uncheck the option for synching music and photos in the tabs of his Apple TV device
Any assistance most appreciated
Kind Regards
Bernard
Powerbook G4 1.67mhz 15"   Mac OS X (10.4.5)  

Chances are it's your internet connection.
If you can play things under the Computers tab from your local itunes library without issues then your LAN is likely to be fine.
AppleTV2  does not play well with slow/variable interent connections for rentals.
Basically it calculates how much needs to download to flash memory to allow continuous playback without interruption at the rate your internet connection is delivering - if this rate drops due to more users in your area or perhaps throttling of bandwidth by your ISP then the calculation will be wrong and movies will stop/start.
If you simply have a slow connection, then you have to wait for much of the movie to download first, this may take some hours.  On AppleTv1 the presence of an internal drive made this much more robust as the movie would stay on the unit until the rental/view period had expired.  It might take hours to download (so rent in advance of viewing) but once it was there it would stay until expiration.  AppleTV2 however does not retain the download and often if you restart the film it has to start downloading from scratch which I think is crazy.
Please send feedback here:
http://www.apple.com/feedback/appletv.html
I wish they had the option to 'lock the download in memory' until viewed or deleted - this would limit you to 1 HD movie rental at a time in order to keep enough free for other tasks/local streaming usage, but would make the device far more practical for slow connections.
You should test your internet connection at say speedtest.net on the computer.
Just as estimates I'd say:
1Mbps - probably 12 hours+ to start watching HD, less for SD
3-4Mbps - 20-30 mins to start watching HD, within a minute for SD  (my speed)
8Mbps+ - watch within a few seconds
If you go to Settings and in iTunes store options change to SD from HD you may find you can watch far quicker with any new rentals, but if you want HD it defeats the purpose.
AC

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