A friend wanted to be able to play internet radio on his Apple TV. So I tried the first idea I had and amazingly it works. I've tried this on my Apple TV 2.0.; I'm not sure if it works with the first-gen Apple TV's, however. S here's how to get your favorite internet radio stations to stream through your Apple TV:
In iTunes, go to your favorite radio station under Radio, drag it to a new playlist. (I then added a regular song just in case, but it'll probably work without doing this.) If you're getting your internet radio from the web, use the Advanced menu to Open Stream, then copy that to your playlist.
Add as many radio stations you want to the playlist.
Make sure this new playlist syncs with your Apple TV.
On your Apple TV, navigate to the new "radio" playlist you made.
Select the stream you want to play and you're ready to go. I turned off my Mac for a sec just to make sure it wasn't getting the music from there -- it's been switching...
