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I'm trying to set a ATV2 up for a friend that does not have a network at home. I know you cannot hook a USB HDD to the ATV2, but can you hook a NAS up to it with a crossover cable? Anyone try this? The other option is to put a router between them but don't want to waste the money if we don't need to.

Thanks!
23Diablo23
I have not personally tried it, but logic says it would work.
yeah, provided you set static IP on both
If you have a NAS with an auto-uplink network port you don't even need a crossover cable. A regular straight-through cat5 would do.

However, I would assume that you'd pay more for a NAS than you would for an external hard drive and a router with a USB port to connect the hard drive to. I've seen 2TB external drives for less than $100 and I picked up my Wireless G router a year ago for $40 so I'm sure you can find them much cheaper today.
@SandmanCL
What's your router model?

I'm using one from my ISP but only supports FAT32 and it's damn slow (write).

TIA
Not at home right now so I'm not positive of the router model but it is a Netgear router that I have flashed with dd-wrt. This may be outside the scope of what the OP wants but I know several routers provide access to a USB mounted drive.