I had a look at the
Apple Core LLC website and was pleasantly surprised that the USB patchstick was available again for purchase, either through post, or via software only download. I elected for the electronic only download, which did not take long. I had an old USB stick (1gb) sitting in the cupboard, so this formed the hardware for the patchstick.
The website claims that it is a fairly easy and painless job to create the patchstick using the software. What they do not tell you, is that it involves some Terminal work and once the patchstick is created, you need to use a SSH client such as FUGU to transfer files to the AppleTV.

In fairness to the Apple Core LLC, the instructions provided were very clear and even a terminal novice like myself was able to work my way through five (5) terminal entries (I just cut and pasted from the user guide).
Once the patchstick was created off to the AppleTV I went and again following the instructions, factory reset, updating the software again to the latest AppleTV version, turn the unit off (unplugging from the wall) and pluggin in the patchstick, turning the unit back on and away it went as promised in the user guide.
This whole process took a relatively painless 15 minutes and presto, some neat new features on the AppleTV.
The pain came, when I went to link the AppleTV to my IMAC's Itunes account and it would only sync the non DRM content. An hour of fiddling around, and then my pride got the better of me and I googled for an answer. Solution, a 5 second fix by authorising my Itunes account on the IMAC again, which then automatically authorised the AppleTV.
I used FUGU to connect into the AppleTV and it was just a case of drag and drop into whatever folder you create within the AppleTV folder structure. Since the 'Hack' installs Perian, most codecs should be covered, but the userguide also recommends to install additional codecs from an application called MPlayer all from within the Appletv menu on the tv (very quick).
End result - I am watching a Divx show on my AppleTV
Further features installed are things such as:
RSS feeds
Weather
Web Browsing (Where you can bookmark pages - handy for such great web front pages such as Mactalk).
My verdict: I am giving it a 10/10 for the results it delivered as promised. The 'software' for creating patchsticks can of course be found on various sites, but for a one stop fix, with clear instructions (that actually works) and email tech support and updates for 12 months, I was very happy with the price.
If anyone has any questions, just post here!