Several of you have asked if the existing hacks are going to be wiped out once the software update is in place.  My simple answer would be “most likely”.

It is my impression that the new software/firmware update will be based on Leopard as opposed to Tiger like on the current hardware.  The core files from the two operating systems are not compatible with each other.

Even if the update is not based on Leopard, it is still very likely (read definitely) that the update will wipe out any modification to the Apple TV first before installing a new set of files.  There is no reason for Apple not to do this because it wants the Apple TV to be in a known state first before it updates.  Without doing so, the update might not be successful.

That’s just my two cents.