I was planning on installing Linux on my AppleTV 40gb shortly. Now I
know some linux and can do a few of the basic commands. So what I want
to know before getting started is:

 I plan on following these directions word or word. Is there anything
im missing or should look out for?

http://wiki.xbmc.org/index.php?title=HOW-TO_install_a_Miminal_Ubuntu_and_XBMC_with_sound_over_HDMI_on_the_AppleTV

Does HDMI work properly?

HDMI works.

The instructions say to use a USB keyboard, can it be a wireless
keyboard/mouse combo? I dont have anything that hardwired anymore.

How are you going to pair the USB wireless dongle to the wireless keyboard/mouse ? Also atvbootloader knows nothing about bluetooth devices.

If I do the backup that is talks about in the directions, will I be
able to restore the original settings down the road?

yes

Thanks in advance, im excited to get started and a little nervous at
the same time

hehe. Jump in, take you time, ask questions when you don't understand. If you get results difference that in the guide, STOP and ask questions.

Scott

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