You're probably right, it might be the hard drive. Would be interesting if a SSD was put in. I recently resolved most of the performance issues by moving away from a NAS and installing a larger drive in my iMac, mirrored using SuperDuper, but that's another story, but since I know my ATV is fine, I probably won't be looking at replacing it.
In terms of the output, even if USB could be used, it seems like there are a lot of debates on the quality and implementation. Maybe you can look at just getting the best out of the Toslink. A reclocker like the Pace Car might be an option. One thing that I'm really curious about is the Altmann UPCI (Ultra Precision Clock Injector).
In terms of the output, even if USB could be used, it seems like there are a lot of debates on the quality and implementation. Maybe you can look at just getting the best out of the Toslink. A reclocker like the Pace Car might be an option. One thing that I'm really curious about is the Altmann UPCI (Ultra Precision Clock Injector).