• Fixed an issue with MKV playback over the network
• A problem with the media server crashing has been fixed
• Video playlists work again
• A new feature where downmixing 5.1 surround audio to 2.0 stereo audio has multiple dynamic range compression options. In other words, surround audio will not be as "quiet" when played through headphones.
• New handling of quitting/suspending commands that includes a new scheduling feature.

The Mac mini has always been the perfect form factor for a media center appliance (often called a Home Theater PC/HTPC). It's extremely small, almost completely silent and it can easily blend into an existing electronics shelf - or be hidden away completely.

The lack of a refresh (and rumors that the line was going to be discontinued), coupled with technical specs that didn't justify the price-point, have led many would-be HTPCers to write off the Mac mini as an option because they assume it is just too expensive.

However, as more and more content moves online and people become accustomed to getting their media from a computer, the idea of a HTPC is starting to make sense to more and more families. Taking off where netbooks left off, nettops are starting to enter the marketplace. These low-priced machines are diminutive, low-powered and connect easily to a television set. There's just one problem. Although nettops are pretty good at playing back regular video content, they absolutely choke when it comes to Flash, Silverlight or any other streaming content.

Still, when you look at the numbers, nettops aren't much more inexpensive than a Mac mini. You get what you pay for, too: the mini is much more powerful and can actually be used as a workhorse computer.

Although many of us have longed for Apple to release an official media center product that brings the Mac mini and the Apple TV together, the current Mac mini is more than capable of serving as that product right now.

Now that Apple has allowed the purchase/rental of some high-definition films via iTunes, the media content options for the Mac mini match that of the Apple TV and then some.

Last month, Robert wrote about his experience transforming his "Switcher-Dad's" mini into a nice Mac media center.

In mid-June, my fiance and I bought a 2009 Mac mini (the 1GB 2.0GHz model). For the last few months, I've been testing hardware, accessories and lots and lots of software to make it into the best HTPC around. My goal was simple: my Mac mini needed to work with my existing surround sound setup and it needed to seamlessly connect to the FreeNAS media server where several terabytes of audio and video files reside. It needed to connect and work with our other Macs -- as well as our Windows 7 machines -- and it needed to be silent and simple, with an interface that a visitor or guest could easily suss out.

Read on for tips and tricks to get the most out of your machine's hardware and software, as we transform a 2009 Mac mini into the ultimate HTPC!

Part I: the hardware side

Part II: the software side

Happy Thanksgiving! I'm super thankful that I have been able to spend the last 13 months blogging for TUAW and interacting with all of you. On a more superficial note, I am also thankful for my Macs and all the cool stuff Apple products enable me to do.

The newest member of my Apple family is the Apple TV. Yesterday, I had the opportunity to talk to Avner and Andrew from boxee, the company behind the social media player of the same name. Boxee released an update earlier this week, but the next big version is set for December 4, 2008. Avner and Andrew were nice enough to answer my questions, share some details about the future of boxee and best of all, provide a link so that TUAW readers can join in the fun! If you want to try boxee on your Mac or Apple TV, enter your e-mail address at http://boxee.tv/tuaw and you should get an invite within 24 hours.

In the comments, on Twitter and via e-mail, many of you have asked questions about boxee, its limitations and its future. I took these questions and comments to Avner and Andrew, and here's what I got back.

On .MKV support for Apple TV

Boxee supports the .MKV container and if you are using a Mac mini, MacBook, iMac or Mac Pro, boxee can play back 1080p .mkv files without a problem. Apple TV is limited by its processor and GPU, and it maxes out playing back 420p and 720p .MKV content. I don't usually deal with .MKV, but a quick Google search turned up a lot of information about programs that can be used to convert files. Apparently, the PS3 has this same limitation.

Hulu performance

A number of users have complained about the quality of boxee's Hulu playback. I also noticed a decrease in quality after the latest update. The update on December 4 is going to address this. The big problem, for Apple TV owners, is once again the limitations of the hardware. Seeing as Apple TV's can stream HD content from iTunes (when downloading anyway), I think this is something that can be greatly improved, but it might take some time. Boxee is still in alpha and the goal is to enter beta sometime next year, so while I think the fact that Hulu is supported at all is fantastic, the Apple TV experience might take some time to fully evolve. If you are using a Mac for boxee playback, your performance will be much better.

• Play, queue and shuffle the media on XBMC
• View cover art for albums, TV Shows and movies
• View artist and album reviews and information
• 'Standard' remote mode. Control XBMC with standard remote buttons