The Apple TV (or, more correctly, the ?tv) is a set-top box designed to
play back media from an iTunes library. The original model shipped
in March 2007.

image from apple.com
Among its features (besides the normal stunning design from Apple) is
its internal 40GB hard drive, 802.11n wifi networking, and the
Front Row-ish interface with the dead simple Apple remote.
The ?tv does not have any recording capabilities, and lacks a tuner, so
its function is limited to playback only. Basically, it’s a large,
stationary video iPod that uses your television for its display and
speakers. it can be synced over ethernet, either wired or wifi.
In addition to playback of synced content, computers running on the
local network can stream media to the device.
Take Two
- At Macworld 2008, Apple introduced movie rentals from the iTunes store, including from the Apple TV, and a brand new interface for the unit. Dubbed the “Apple TV Take Two” by the media (Apple itself doesn’t distinguish between versions), the hardware is largely unchanged. A software update was pushed out for older units.
Resources, Hardware and Software version 1
Resources, “Take Two”