Do ppl prefer the apple tv or mac mini?
I am hoping that i wont miss out on to many features by doing this.. i have read people struggling to get 5.1 audio from the mac mini.. aprt from that i think its a good move.
First of all, you may have some trouble playing iTunes Store HD rentals in their full resolution on the Mac Mini; this is a limitation of the DRM that Apple uses that requires a HDCP compliant monitor to play HD movies.
My brother has an iMac and an Apple TV connected to his plasma TV and he tells me the video looks better from the iMac. Mac Mini would probably have better than Apple TV playback too since it has a better CPU, GPU and the full QuickTime instead of the crippled MP4-only version of the Apple TV.
As for surround audio, it is a pity the following Griffin FireWire audio interface is no longer available:
http://www.griffintechnology.com/products/firewave
With that device you could get your Handbrake MP4 files with pass-through DTS audio to play in discreet 6-channel surround sound, something that Apple TV does not do. To be fair Apple TV plays surround sound from files that have Pro Logic 2 audio tracks and iTunes Store movies feature discreet channel Dolby Digital, all through HDMI or Toslink/optical cables, so you would get a clean digital signal.
You should also consider the interface in your decision. With Apple TV all you need is the Apple Remote but with a Mac Mini you need the remote, a wireless keyboard and mouse. Personally I find it a hassle to use a keyboard and mouse on my couch and prefer the intuitiveness of the remote.