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does the apple tv 2 stream from the internet hd movies without lagging
or buffering
or does this all do with adding a hd video card to the apple tv's
thanks
The ATV2 plays HD films just fine. Whether they will stream from the Internet depends on the speed of your Internet connection.

JR
hi so the apple tv 2 for HD does not require me installing a Broadcom Crystal HD card.
No (not even possible) but the content has to be in h.264 encoded to get the hardware decoder happy. Else only SD resolutions are able to be decoded.
Apple TV 1 (wiki) (silver) needs the Broadcom Crystal HD (wiki) card, but can do more codecs when compared to the ATV2.

Apple TV 2 (wiki) (black) does not require any hardware modification, but can only do h.264 (this is mostly all you need)

I need a little compare page that I need to update that gives the basic idea, but remember that the ATV1 and ATV2 are two very different beasts that share the same name:

ATV comparison guide (wiki)