Guys,
I finally did it. MovieCutter, AlJazeera was the reason why I needed this
Here's what I did:
I Installed livestation 2.5 on ATV 3.0.1. When I ran it via NitoTV (you need to have NitoTV installed) it loaded and I got the login prompt. Without a keyboard and mouse how can you enter the username/password. Luckily, I have a running Livestation on my Xandros (you can take it from Windows too C:\Documents and Settings\YOUR_USERNAME\Application Data\Livestation\Livestation.ini). So I took the Livestation.ini and created this folder (it usually gets created if Livestation logs in successfully):
/Users/frontrow/.config/Livestation and put Livestation.ini in it.
I had to play with the position and size to make it full screen. The limitation of this is that I cannot change channels (only through editing the Livestation.ini).
For those interested in installing Livestation. Upload the Livestation-2.5.0-intel.dmg file to your ATV. Get it from RapidShare (you won't find it at Livestation, the latest version is 3.1):
http://rapidshare.com/files/202017531/Livestation-2.5.0-intel.dmg
Enter these commands:
sudo hdiutil mount Livestation-2.5.0-intel.dmg
cp -r /Volumes/Livestation/Livestation.app /Users/frontrow/Applications/
Now, go to NitoTV, Applications and click on Livestation.app.
Good luck!