This sounds like a great idea. Can anyone share step-by-step instructions on how to do? Thanks in advance -- Adam
You will require several ingredients in addition to your ATV1:
-A pre-built Leopard image
-A set of small Torx drivers/bits. If you have a Harbor Freight nearby they usually have some cheap sets that work fine.
-A Mac and a means of connecting a 2.5" PATA drive. I used an old external USB drive enclosure that had a 2.5" PATA drive inside.
-An HDMI monitor; you only need it for initial setup so you can borrow one if needed
-A USB Keyboard and mouse, with a hub if the keyboard doesn't include one. I just borrowed a Dell KB/Mouse from my wife's computer, the keyboard had 2 USB inputs so I didn't need a hub. The ATV1 only has one USB port.
1. Acquire pre-built ATV1 Leopard image (Google is your friend).
2. Remove HDD from ATV1 using your Torx drivers (8 screws, 2 sizes--one set of four for the case, another set of four for the drive-case connection).
3. Connect ATV1 HDD to the Mac onto which you've stored the Leopard image is on.
4. Format the ATV1 HDD using Disk Utility
5. Use Carbon Copy Cloner to clone everything from the Leopard image to the ATV1 HDD.
6. Replace HDD in ATV1 and plug it in. Make sure you have an HDMI monitor plugged in at boot.
7. Attach USB KB/Mouse if you haven't yet. Configure your server as you see fit. I create a new account, enable file and screen sharing, set iTunes to autostart, enable Home Sharing, etc.
8. (Needed if you want more than the ~140GB or ~20GB available on the internal drive) Attach external storage and set it as your default iTunes library location.
At this point your ATV1 should be pretty much ready to go. You can unplug the monitor, keyboard, and mouse, then stick it in a closet or on top of a shelf. I wired my whole house with Cat6 so I prefer to use a wired connection, but wireless should function just as it would on a regular desktop Mac.
Have fun!