I finally decided to bork my ATV and start over to see if boxee beta can be installed on the atv even though Launcher will no longer download and install. The good news is that I was able to install boxee relatively easily. Instructions are in my signature, the big difference is that you ned to manually install the boxee.app into the root /Applications folder NOT ~/Frontrow/Applications.
You may need to update permissions, but I can and will post instructions to this thread later tonite.
I still suggest you use XBMC, but for those who love boxee beta, its good news.
Update: Overview (Detailed are in my signature)
1. Factory Restore (Assuming you have to). - Once restore update to 3.0.2 via GENERAL>UPDATE SOFTWARE.
2. Run Patchstick (Im assuming you know what this is) - Latest please !
3. Once re-booted into the familiar Frontrow, Update to Launcher 3.2.5 from LAUNCHER>DOWNLOADS.
4. Install NitoTV via ssh (Terminal or puTTY) - See my signature.
5. Once Frontrow Reboots, Nito appears. Run Smart Installer (It will download the 10.4.9 dmg) - Needed for USB access.
6. Copy OS.dmg (coreaudio) into ~/Frontrow/Documents. Run Smart Installer again. AFP, FTP enabled now.
7. Download and unpack boxee beta on your mac (see my signature). Using sftp (cyberduck) copy boxee.app into the root Applications folder; /Applications NOT NOT NOT ~/Frontrow/Applications.
If you receive a permissions issue, ssh in and issue the following;
sudo mount -uw /
sudo touch /.readwrite
Try again. Should be 775 or 777.
You can install Flash from Nito. Install XBMC. You can Run Boxee from within Launcher. It will create its own userdata folder.
Its a good idea to have the recovery.dmg installed within Nito and install OS.dmg. In order for flash to be installed from nito, you need to have the coreaudioframework bits installed, which are thankfully provided by the recovery.dmg that gets installed from within nito.