Apple TV 2.0 update now available [updated x3]

Apple has released the much-anticipated 2.0 update of the Apple TV software. The update brings a redesigned interface to the set-top box, as well as support for SD and HD movie rentals, iTunes Store browsing and purchasing directly from the device, AirTunes capabilities, flickr photo browsing, and more. For a more complete look at the changes, read our feature article.

The Apple TV 2.0 update is available now through the “Update Software” menu selection in the Apple TV’s Setting menu.

Updated: The Apple TV 2.0 update currently offers 75 high-definition movie rentals, a new introductory movie, and unlike the version demonstrated at Macworld Expo in January does not appear to include a 1080p resolution setting . Apple’s updating process requires at least six restarts of the Apple TV, three of which include progress bars showing that the update is currently underway, and concludes with the playback of a new movie that replaces the “wall of videos” Apple TV 1.0/1.1 introduction with a slightly different version.

Update 2: iLounge editors have been playing with the Apple TV 2.0 update and found that the 1080p resolution option is there, but may not appear on your first attempt to find it. When you look under Settings > Video > TV Resolution using a 1080p-ready television set, you may be presented with 6 or 7 options—720p HD, 1080i HD, 480p, 720p HD – 50 Hz, 1080i HD – 50 Hz, and 576p – 50Hz should be there, with 1080p HD appearing under 720p HD. One of our editors had the 1080p option appear immediately; the other had to turn his TV on and off to make the HDMI connection re-handshake before it appeared.