The new Apple firmware iOS 4.1 is now available for Apple TV. Apple have just released iOS 4.1 for the 2nd generation Apple TV which is available for download. You may not find some useful features with the update but it is expected the something exciting but be added from the iOS Jailbreak community.
If you are not familiar with Apple TV you can visit our previous detailed Apple TV review. If your are worried about the local storage here, then update yourself as Apple TV is based on Rental Models which completely depends upon cloud streaming of media content from its own server.
Here is a complete specification how your Apple TV reacts after iOS 4.1 update.