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If, like me, you find Apple a little bit too smug, you'll be simultaneously impressed and annoyed by Apple TV. It's the 'cool' side of computing's attempt to repeat the success of iTunes, the iPod and iMac.

On the one hand, that represents a successful attempt to sweep away the techno-clutter and complication of using a new technology. On the other, it locks users into a restrictive, proprietary system that only works with one type of software and hardware. I'd love iTunes if it worked with my Creative or Archos MP3 players, but it doesn't.

Apple TV is a combination of media streamer and media server. It can play back audio, video and photos direct from your PC/Mac, or from iTunes online, but thanks to the built-in hard disc (40GB or a more practical 160GB), you can also use it to store a copy of your computer's media library (handy for laptop users).

Like the iPod and iMac, Apple TV looks really good. It's compact and elegant, though heavy. The Apple Remote is tiny with just seven controls, which is a bit of a joke. You're almost certain to lose it, and you can't even put the thing in standby, so it's burning 48W of 'leccy all day long.

The European product is identical to the US model, so I wouldn't recommend Apple TV if you rely on Scart - it doesn't even have a composite video output, let alone RGB. You do get component video, which can be expensively converted to RGB Scart, and there's HDMI for flat-panel owners.

There's also an optical digital audio out, and analogue stereo audio outputs. Network connections are via Ethernet or WiFi, which set up easily, and there's a USB port - although you can't plug an iPod into this. Really, it's just for servicing.

On a Mac, Apple TV connects instantly to iTunes; on our PC it took a few goes, then magically started working. You can choose to stream from any number of iTunes computers, or sync itself to one library, which can take a few hours if you've got a lot of media files. Once you're connected you can play back just as though you were using iTunes, using playlists and slideshows.

Streaming audio and video were smooth over both Ethernet and our 802.11g wireless network, although there was some delay to playback instructions, which disappeared when playing back from the hard disc. While Apple TV supports HD Ready TVs up to 1080i, with menus at 1080, 720, 576 and 480, it will only play back at up to 720p. Not a big deal, as there are few 1080p TVs out there.

What's on

Apple TV will play back audio in Apple's AAC format, MP3 (fixed and variable bitrate), AIFF and WAV. Not surprisingly, it doesn't support Windows Media Audio, or anything else. Apple hasn't got a dominant image format, so you can view JPG, BMP, GIF, TIF and PNG files.

Video, unfortunately, is restricted to Apple's own formats - Quicktime movies and your own films made with iMovie, in MPEG-4 for standard definition (up to 720x432) and H.264 for hi-def (up to 1280x720). If you've got any (legitimate) DVD rips or home movies in MPEG-2, DivX, or another popular formats, then you'll have to convert them to watch on Apple TV. Software is available - for a price.

If you want to watch movies and TV shows from the iTunes Store the choice is even worse. iTunes UK offers a selection of movie trailers and video podcasts for free, mostly in 480p but a few in 720p, and for £1.89 a shot you can download music videos and some classic Pixar short films. The movie trailers looked surprisingly good, the rest of the 480p stuff wasn't so hot.

Apple says the end of 2007 will see genuine TV and film content added to the UK iTunes Store; some might even be in HD. And, of course, the BBC wants to put its iPlayer service on to iTunes.

Of all the media streamers I've tried, Apple TV gave the least setup problems, and the internal hard drive is useful. But so far it's just a very good, very expensive living-room MP3/photo player, riddled with inconsistencies and lacking that crucial Scart socket.

If iTunes starts to offer some good online content, especially from the likes of Auntie Beeb, it will be worth coming back for a second look (and a 300GB version would really rock our boat).