How-To: play DivX and Xvid on your Apple TV - Engadget

A simple way to make your AppleTV box a lot more useful :)

How-To: play DivX and Xvid on your Apple TV - Engadget

The two biggest Apple TV limitations are the lack of codec support (like XviD, DivX, etc.) and not even having the ability to do basic surround sound like Dolby Digital 5.1. These issues were resolved almost immediately after the Apple TV was released, although the hacks were somewhat less than practical. Something as simple as getting your Apple TV to, say, sync and recognize your XviD movies as playable was no simple feat. Thankfully, that's no longer the case, and we want to show you how to get the most out of your Apple TV. Who says you can't have your cake and eat it, too?