| My AppleTV runs quite hot as well.
However, I am running it with an upgraded 160GB Hitachi drive. It is connected to my Pioneer Receiver via component and optical cables. I've also got the RCA cables plugged in which routes audio to a second preamp for karaoke.
So far it hasn't had any problems other than being hot. I do find that it cools when in standby. Luckily my Logitech Harmony 880 remote puts it into standby mode automatically when I choose to power off all devices or switch activities.
I would recommend a Harmony remote to anyone with an AppleTV. However, I found that the Harmony remote works best when the Apple remote is mapped to the Harmony's center directional pad.
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24" iMac 2.8GHZ Core 2 Exteme OS 10.5 | 4GB RAM | 1TB HDD
Dual 1GHZ G4 MDD OS 10.5 | 2GB RAM | 800GB HDD | iSight
TiPowerBook G4 1GHZ OS 10.5 | 1GB RAM | 60GB HDD
80GB iPod | 8GB iPhone | 4GB Nano |