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I use Sapphire http://appletv.nanopi.net/ on my AppleTV to stream divx and xvid movies from my home NAS. It takes a bit of work to get all of the workarounds in place for it to work.
Alan Quartermain has released a Backrow developers kit http://alanquatermain.net/brdevkit/ that works for both Frontrow and AppleTV, and there are a handful of existing plugins out there, some even open source projects.
The AppleTV has a LOT of potential, and I agree that there are some very cool possibilities out there. I would love to see a native smb,ssh, and divx codec compatibility built in, (but what would the movie studios think about that?). Don't think Apple is going to be opening it up anytime soon as far as codec compatibility goes.
Not sure if you read my article I wrote a while back on "Repurposing the Apple TV" (http://appletvsource.com/content/view/464/). It shows you what kind of applications might be available on the Apple TV if there was an SDK for it.