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HD Movies from ABC and Fox are $.99.  (Other studios might jump on board later but are at $2.99 still).  Netflix built in too.  YouTube HD and Flicker and MobileMe still supported.  No hard drive, all streaming.  Rotton tomato reviews.  $4.99 to rent first run movies.  Airplay can stream content from iOS device to AppleTV, making the iOS device an awesome remote/storage container.

it is smalllll

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Seth Weintraub's favorite gear