Apple TV has no place in a high end audiophile system. I have tried it, and it is awful. My system is a custom-built 3-way active system using Japanese drivers from TAD. Each channel consists of an 18" bass driver, 2 x 15" mid drivers and a 1" compression horn, all individually amplified and crossed over actively using a Marchand XM-44. I spent $20k to have this system built and it FAR outweighs the Wilson Grand Slams. I challenge anyone to the A-B comparison. But I digress. Listening to Apple TV audio (full resolution CD-quality audio in WAV and Apple Lossless) does not even come close to a CD transport. Both the CD transport and the Apple TV are connected via Toslink to a Krell HTS 7.1. The imaging for audio is very poor indeed. It sounds like a wet sheet is in front of the speakers and there is no definition. I do NOT recommend this thing for serious listening. Put it in your kid's play room so he or she can watch cartoons. That's all it is really good for. Anyone else have any workarounds to improve sound on this thing? The convenience would be nice ...