if it works in iTunes, then it works with appletv.
That's not the way that I read the
Apple TV page and why I canceled my order. On the "What you need" tab, Apple says:
Video
• Video formats supported: H.264 and protected H.264 (from iTunes Store): 640 by 480, 30 fps, LC version of Baseline Profile; 320 by 240, 30 fps, Baseline profile up to Level 1.3; 1280 by 720, 24 fps, Progressive Main Profile. MPEG-4: 640 by 480, 30 fps, Simple Profile
Audio
• Audio formats supported: AAC (16 to 320 Kbps); protected AAC (from iTunes store); MP3 (16 to 320 Kbps); MP3 VBR; Apple Lossless; AIFF; WAV
Did I misread the specs? I too am interested in Apple TV primarily for viewing .AVIs on my TV. Also, to get AVIs to play in QuickTime, I installed
Perian, so I don't think it's a native part of QT. I don't think I've ever tried an AVI in iTunes.