Well in the past, I have hacked an Xbox to run a larger drive, and a Netbook to run Mac OS X. The last thing I have been working on is upgrading the AppleTV to a larger drive. The largest drive it ships with is the 160GB drive. I filled that up quite nicely already. So the quest was out to find a solution.
Most of the sites around the net state that the drive is a IDE (PATA) laptop (2.5) drive. Sure enough it is. The largest drive that is available is a 320GB unit. Not easy to find. I was able to find it through my supplier at the office, so I got one in. I fought with it for many a night, backing up the existing 160GB drive, and restoring it to the 320GB unit. I did it about 8 times, and finally on Saturday afternoon it took! The drive is wiped at the end of this, which is fine, since it sync’s to my Itunes server anyhow. I set it to sync overnight and everything is working great.
Inside the AppleTV:

Final Result:

Upgraded AppleTV Drive