Would Apple Tv work with 512 Kb internet speed, or does is require higher speed?

Is a hight spped internet connection a prerequisite for Apple TV to work? Or can it work using 512 Kb?

It may well work, but I believe it would be unbearable.
1080p HD movies require a recommended speed of 8 Mbps, 720p HD movies require a recommended speed of 6 Mbps, while SD movies require a recommended speed of 2.5 Mbps.
You could download your content to your computer though and whilst it won't be any quicker it would be significantly more convenient, since your computer doesn't need to redownload content when it's turned off.

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