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One thing to consider is where you want to store your media. If you have some sort of NAS I think it's sort of a toss-up (as long as you're willing to live with no 1080p). If you don't, I would drop the ATV2 from consideration--the ATV1 can handle external storage in addition to its internal storage and would be the better choice.
I have to admit, I have become an ATV1 collector. They are so useful as little, quiet, low-power computers. I have one running Leopard that does duty as a Wuala shared-storage server, iTunes server, and "download" manager, with plans to add a USB hub for additional external storage. Another one is awaiting its Crystal HD card and will be doing living-room XBMC duty (the living room needs 1080p). I am shopping for another one for my 7-year-old to have as a "first computer"--just add a leftover keyboard, mouse, and monitor. I do have an ATV2 for the bedroom and it's great, too, but not nearly as versatile.
The ATV1 goes for about $50-60 on eBay for the 40GB model, another $40-50 for the 160GB model. You can pick up the Crystal HD card for another $50 or so, so in total the price difference between the two is quite small.
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RckStr
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id go with the atv2. it smokes the original atv when it comes to video decoding. it decodes 1080 without breaking a sweat right out of the box, while the original barely does 720, unless u rip it open and bastardize it. seems like a no brainer, unless you must have it display 1080p, of which the atv2's future is uncertain.
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Can't talk for ATV1 but 720p xvid media will stutter in ATV2, HW acceleration is only supported for x264 in ATV2.
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I have been using XBMC on an AppleTV 1 every since the Crystal HD card has been supported. I actually bought the Crystal HD card before I bought the AppleTV. Prior to that I was running XBMC on a mac mini. The mac mini has been replaced by an Apple TV 2. All of my content is streamed through a 100 Mbps wired ethernet network served a dual external hard drive plugged into a an airport extreme via ubs. Low tech and definitely low cost. Like your self, all of my content tops out at 720p as both of my current monitors top out at 720p.
As of today's date (and time I might add) the performance of the ATV2 is not on par with the ATV1. I have stuttering/buffering and and surround sound issues on the ATV2 that I do not have one the ATV1. I am currently using the 2/17/2011 release of the nightlies as I have found that the most problem free as of today's date.
Given some more development time, I believe that the iOS version of XBMC will equal if not surpass what currently exists for OSX. In addition, the ATV2 uses much less power and generates much less heat than the ATV1. I am not inclined to run any of the linux variants on the ATV1 as I like some of the features (and their simplicity) that are offered on the standard apple front end.
As much fun as it may be to muck around with terminal and unix commands, when these babies are running they are both very wife and kid friendly.
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RckStr
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ive never gotten stutters with anything. Granted, everything HD ive got is x264, but ive got full BR rips and I am on wifi (apple airport extreeme in the next door room)
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RckStr Wrote:id go with the atv2. it smokes the original atv when it comes to video decoding. it decodes 1080 without breaking a sweat right out of the box, while the original barely does 720, unless u rip it open and bastardize it. seems like a no brainer, unless you must have it display 1080p, of which the atv2's future is uncertain.
OP already knows this and specifically asked "Apple TV 1 w/ CrystalHD card or a new Apple TV 2"
With that in mind, the ATV1 with CHD will smoke the ATV2. There's no ripping open and bastardization. There's four screws to take apart the ATV1 and the chip swap is a standard miniPCIe install. If you've ever installed ram then you're more than qualified to do the upgrade.
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one further note. Am lead to believe that XBMC running on the ATV1 will not automatically start with WIFI working. If you want to automate the start up into XBMC on ATV1 it can not be done. Please correct me if someone has found a solution for that.