iPad 2 and Apple TV plays perfect!
OK...so I got an apple tv after I found out that AirVideo is supported now. It really works great! Take any format video you have on your mac and stream it perfectly. I used to have to put on a flash drive and play on the PS3. All the other streaming products were horrible. The nice thing is you do not have to convert anything and put it into itunes.
This is a must have. Plus I got a new one on ebay for $80. Besides Airvideo you can play all of itunes, netflix, youtube (which is nice). I know you can do this with other IOS devices but it just really works nice with the ipad (which has a big black screen which you swipe.
Anyways so far I really love this thing. I didn't think I would.