my post on another forum about the issues doing it
1. Download and run Season Pass, this was straight forward, somewhere i read that this automatically installs xbmc but it doesn’t, you also only need the 1st few steps from the links above as you don’t need the tethered boot thing anymore. It took a few attempts to put the device into DFU mode so it could do the jailbreaking bit but this was the easy part.
2. Preparing to install xbmc, the Apple TV does not have to be connected by USB although you would think it does. I spent for ever trying to log into the Apple TV with it connected and no combination of IP address or apple tv name would work. So at this point take it back and plug it into your tv and switch it on and connect it to your network, also go into general settings and find the IP address for your apple tv.
3. Installing xbmc, open terminal (on a mac) and enter the lines of code one at a time, when you are done doing this you should see the XBMC item on the Apple TV menu screen.
4. Set up share folders on any computer on your network, I did two separate folders, one on my computer and one my gf’s which have folders with torrents in. I had trouble seeing them at first but set the sharing to use Windows SMB whatever that is which makes it easier to find.
5. Go to videos in XBMC and add source, select windows SMB as the type then go find your folders.
6. Hit play, its worked on everything I tried, mostly SD AVI’s so need to download some HD stuff to see how it handles that but so far this little box is just full of awesome
in addition to the above now watched some HD stuff with it and it continues to stream flawlessly, very happy with it.