The Apple TV 2G a a much more worthwhile purchase than its predecessor, thanks to the $99 price tag. The only true drawback is that it doesn't have enough internal storage to store movies. Then there's the limitation of not being able to play anything back that's not in one of Apple's video formats (learn to convert MKV to MP4, which is fully supported by Apple TV).
One solution is to convert video to something that's compatible and stream it from your computer to the set-top box. Anyone who is on a laptop (or any other computer not designed for crunching those larger files) knows that converting video isn't an enjoyable process.
Related MKV[1] Converter Software
WinX HD Video Converter Deluxe is one of the Best MKV Converter. It fully supports Multi-core CPU (i3, i5, i7), and armed with Hyper Threading Technology (Converting MKV to AVI, MP4, FLV, iTunes, etc., by multi threads at the same time, speed up the conversion timely). That is why WinX MKV converter program can be the fastest solution in the current market.
Other Source Related MKV
Convert M2TS to MKV: convert BDAV M2TS, AVCHD M2TS to MKV keeping best quality
Convert MKV to MP4: make MKV video most friendly on your Windows/Mac OS computer
Convert MKV to iPad: Play and watch HD MKV movie with iPad 1024x768 LED display
Convert MKV to iPhone: enjoy 1080p MKV film on iPhone 4 960-by-640 Retina display
Related External Source
[1]: Matroska MKV: MKV Video Knowledge from MKV Official Site