XBMC, the open-source media center software that spawned offshoots like Plex and Boxee, has just launched on the jailbroken second generation Apple TV bringing 1080p video playback with it. You know that $99 tiny form-factor powerhouse TV Flash (black) to play with, but until now, the full potential of your little $99 media puck has been difficult to realize.
XBMC comes packing full hardware video decoding using Apple's 'VideoToolBox' private video acceleration API. This has given XBMC access to the built-in hardware video acceleration of Apple's A4 SOC, making non-Apple approved HD video playback a reality. Yes, that's right, all manner of 1080p video can now be streamed to and played on the tiny $99 box.
It's not just video playback XBMC brings to the Apple TV either. Apps you know and love from XBMC on your desktop, Xbox, or first generation Apple TV are there to play with. Courtesy of Cydia, XBMC is also available for any jailbroken iPad or iPhone, ready to stream media to your portable screen.
As you might have guessed, you won't be seeing XBMC in the app-store any time soon, since it directly competes with apple products.