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Hi,

I have an ATV2 that I'm planning to install xbmc onto. If I get a NAS device will I be able to connect it to the ethernet port on my ATV2 and stream videos through xmbc?

Thanks,
Yes
To clarify...

You can't simply connect the NAS directly to the ethernet port of the ATV. At the very least, you need a crossover ethernet cable. Simple way is to plug both devices into a switch. They should see each other then.

Once you get the network connectivity properly set up. Streaming movies from a NAS to the ATV2 running XBMC is where XBMC's strength lies.

If you are lucky enough to have a ethernet port at the location of the ATV2, you can actually locate the NAS anywhere else. They do not need to be next to each other to work. They simply need to be on the same network.

ATV2 also have wireless network capability. I assume this would work with XBMC if you choose to connect this way.

-Dazex
Most recent Mac computers (in the last 5+ years) have a ethernet port that doesn't require a crossover switch - it has the crossover capability built-in when necessary.

I don't know, but there is a chance the aTV2 does too...if so you could plug a NAS directly in without a crossover cable or switch. But in most situations, dazex is right, that's usually not the ideal configuration anyway. I just wanted to point that out since many don't know that about some Apple ethernet ports (I'm sure many people have used a crossover cable with Macs that didn't need to), just in case it applies to the aTV2 as well.
Yeah, crossovers are a thing of the past. My dell from 2006 is auto sensing, almost any card made anytime recently is auto sensing.