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Apple doesn't exactly make it simple to watch content that's not purchased from iTunes, and the Apple TV was clearly meant to be an iTunes portal for the living room. The Apple TV's spec page indicates that it supports a very limited number of file formats: anything from the iTunes store, H.264-encoded movies, and MPEG-4 video. For the average user, these will likely be fine, and it's not hard encoding one's own movies to fit one of these formats. On both the PC and the Mac, a user can employ Apple TV Video Converter(, ) and DVD tp Apple TV Converter(, ) to open almost of different formats/DVDs and then encode them "for Apple TV".
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