Option 2 is the best option.
Cool, thanks for the info.
I'd be happier converting the existing media as my other half would kill me if I messed with the software on her beloved Apple TV lol.
Except where you specifically don't want to mess with the software. Then it's just about the worst option.
In what way?
I personally use Plexapp.com on my ATV2 with plex server on my 7TB hackintosh nas, best solution i've ever had since the old XBOX & XBMC