The Apple TV 2G a a much more worthwhile purchase than its predecessor, thanks to the $99 price tag. The only true drawback is that it doesn’t have enough internal storage to store movies. Then there’s the limitation of not being able to play anything back that’s not in one of Apple’s video formats. One solution is to convert video to something that’s compatible and stream it from your computer to the set-top box. Anyone who is on a laptop (or any other computer not designed for crunching those larger files) knows that converting video isn’t an enjoyable process.
Luckily, you can hack Apple TV to playback many more types of video than you ever could right out of the box.
You will also need to install Plex on your computer (Available Here)
1) From there, you will need to unplug all cables from your Apple TV except for your Micro USB.
2) Launch Pwnage tool and follow the instructions to build the custom firmware and put Apple TV into DFU Mode.
3) After that, you will launch iTunes and restore the custom firmware (hold option key and hit Restore) choose the custom firmware you just built.
4) Your Apple TV should restart, and will be jailbroken at this point.
5) Go to the settings of your Apple TV and get its IP.
6) After that, SSH into your Apple TV via the terminal application. Use ssh email@example.com and update the number to your Apple TV’s IP.
(If you are greeted with a @ Warning: Remote Host Identification Has Changed! @ browse to the folder and erase your known hosts file)
7) Right now you are logged into your Apple TV. Copy/paste each of the following, hitting “Enter” after each line.
echo "deb http://apt.awkwardtv.org ./" > /etc/apt/sources.list.d/awkwardtv.listecho "deb http://www.ambertation.de ./downloads/PLEX/" > /etc/apt/sources.list.d/plex.list
8) From there, update Cydia Database
9) Instal Plex plug-in
apt-get install plex-client-plugin
10) Update plug-in
11) Unplug microUSB and plug your Apple TV back in. (Video above shows how to)