Cool, I would like to eventually get an AppleTV, but it seems to be a bit grainy for movies, and also the streaming is not too good. But I will review the unit that I got when I have been using it for a while. It was under $150.
AppleTV = grainy movies? Not that I've observed.
We've had our AppleTV for a couple of years now, and use it all the time for movies and music. As a fairly Apple-centric household, we love it. We rent 2 or 3 HD movies a month on it. I've never noticed any grainy-ness while watching movies, either with SD or HD content. The HD PQ isn't quite BluRay (it's close...), but it's definitely better than DVD on our 61" 1080p HDTV.
And the streaming radio works well on the ATV, now that it's officially supported. For streaming audio I usually use the Sirius streams from our Dish, but the few times I've used the ATV for it, it's worked quite well. Well enough for me, anyway.