Among the other changes in yesterday’s release of iTunes 10.1, Apple has added a new feature that video-taking Apple TV owners will surely appreciate. Up until yesterday’s update iPhoto users could only stream their photos via Home Sharing but now they can stream videos in their iPhoto library. Simply head to the share menu on the iTunes menu bar, then click share photos, and check the box you see in the image above.

Update: Several readers have pointed out that this does not work for them. This is because the Apple TV is need of a software update to support Video AirPlay as well as this reported function. It should work as soon as Apple gets around to updating their “hobby” and this will probably happen closer to iOS 4.2’s public release. Also, the reported iPhoto video feature is an exclusive to the second generation Apple TV.

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