[lucidthinker]

Increasing the cache, I'll try that - What size do you have yours set to?

I'm considering a Mac Mini for the future -- I think you can do the standard audio out and convert it to Toslink audio with a cable, and do the DVI to HDMI - Not the one cable solution of the ATV tho. And I think it uses the same remote as the ATV so that's no issue there (though I guess you at least would need mouse/KB to set it up like you say).

I do like the simplicity of the ATV, just wish it had more horsepower for playing HD content.

The Mac mini has a audio port that doubles as BOTH a standard headphone jack and optical/TOSLINK jack.

You can use a cable like this for stereo audio:
http://www.mo no price.com/products/product.asp?c_id=102&cp_id=10218&cs_id=1021804&p_id=665&seq=1&format=2

OR use a special optical cable miniplug to toslink like this:
http://www.mo no price.com/products/product.asp?c_id=102&cp_id=10229&cs_id=1022902&p_id=1557&seq=1&format=2

The optical cable supports all surround sound formats that a normal optical supports namely Dolby Digital and DTS. As for the new blu-ray high def sound formats, optical is not capable of that type of bandwidth. They only come through HDMI. As audio via HDMI on the mac is not supported yet(as far as I know), mac users SOL on that front.

The newly release mac mini has MUCH better graphics performance than it's predecessor. It uses the NVIDIA GeForce 9400M which is a big improvement over the earlier chipset with hardware support for a dual monitor or in my case monitor and TV setup.
* NVIDIA GeForce 9400M graphics processor with 128MB or 256MB of DDR3 SDRAM shared with main memory2
* Extended desktop and video mirroring: Simultaneously supports up to 1920 by 1200 pixels on a DVI or VGA display; up to 2560 by 1600 pixels on a dual-link DVI display using Mini DisplayPort to Dual-Link DVI Adapter (sold separately)
* Mini-DVI port
* DVI output using Mini-DVI to DVI Adapter (included)
* VGA output using Mini-DVI to VGA Adapter (sold separately)
* Mini DisplayPort output
My current setup is a DVI computer monitor for my main display and using a Mini DisplayPort to HDMI adapter and outputing 1080p to my JVC 1080p tv. Works like a charm.

The Mini DisplayPort to HDMI adapter can be found here:
http://www.mo no price.com/products/product.asp?c_id=104&cp_id=10428&cs_id=1042802&p_id=5311&seq=1&format=2