Will apple tv stream other software or just media? In other words, can I use apple tv to use my HD tv as a monitor?

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    Not yet.
    The ability to use Apple TV in conjunction with Mac in order to use the TV as a monitor will become available with the release of OSX Mavericks.
    See the apple website and check the information pages for Mavericks, there is a section that discusses 'Multiple Displays'

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