You need to use the latest atvusb_creator (I think it's b13).
You need to have a compatible usb stick (if it came with U3 installed, then you need to download a utility from the manufacturer to remove U3 sub-system first before running the atvusb_creator)
http://forum.xbmc.org/showthread.php?t=38870
the above thread, lists ones that are known to work.
Finally, if you do not see a picture of a penguin sat on an ATV when you boot from the patchstick, then it hasn't worked. When it's finished (after many lines of text) it'll say that you can unplug the usb stick and reboot.
If you have got this far, then when you reboot you will see a Launcher menu entry, go to Launcher --> Downloads --> Boxee Beta and then this will install Boxee.
When that's finished, press menu to exit back to main Launcher menu and select Boxee to launch.
Done!
Hope this helps,
Jim
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