Engadget was tipped (and confirmed) that the new Apple TV is in the works, and looks very much like the iPhone [ED:3GS - not like the new one] it would seem from the limited info available that the main focus is on streaming, and thus capacities will be limited even more, from current 160GB to iPhone likening 16GB.
The much sought after 1080p will finally be available, and it'll run iPhone OS on the underworks (the skin over the top will clearly be more media based) instead of it's own variant on OSX like it currently does, on Apple's A4 chip.
Price will be (unofficial, remember) $99 - which will probably translate to around £85 regardless of exchange rate...
It is described as being small and iPhone like, with only a power socket and video out.