DIY Upgrade Kit For Your Apple TV
40GB really doesn't sound like much space these days. Which makes it strange that Apple would limit the Apple TV to such a small hard drive. If you're thinking of upgrading, and WeaKnees might be able to help you out.
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They're offering a 160GB upgrade kit for your Apple TV for $200. They claim that the upgrade will only take a few minutes and when finished, it will re-sync and grab all of your media from iTunes.
They include a Torx T8 tool so that you can complete the upgrade yourself. However, if you don't feel comfortable doing this yourself, they'll perform the upgrade for $49.
Self-install Upgrade Kit Now Released for the AppleTV [via gizmowatch]