Apple has released Software Update 2.3 for all users of its home entertainment device, the Apple TV. The new firmware version disables compatibility with non-Apple software, an aspect Boxee users might want to take into consideration before installing the new version.

The company, of course, stresses that “It is always a good idea to make sure you have the latest software update for your Apple TV.” All this being said,  Apple TV Software Update 2.3 features include:

AirTunes Streaming from Apple TV - Music can be streamed via AirTunes to Airport Express speakers or other Apple TVs in your house.

Third-party Remote Controls - Apple TV can now learn other remote controls, and use them in addition to the Apple Remote.

Playlists - Playlists in iTunes that contain Movies, TV Shows, Podcasts, and Music Videos can now be seen on Apple TV.

Music Volume Control - Support for volume control in Music.

To update your Apple TV to the current software version, select Settings -> General using your Apple Remote. Select Update Software, at which point your device checks to see if an update is available, and a Download Now message should appear. Select Download Now to start the download process. When the update has finished downloading, an Update Now message should appear. To start the update process, select Update Now. During the update process, your Apple TV will conduct a restart, which is followed by the Apple logo and a status bar.

The company asks users to note that, on some TVs, the screen may display black for up to 15 minutes, and the Apple TV may flash an amber light. According to the company, you shouldn't freak out, as this is “expected behavior.” Also note that unplugging your Apple TV during the update process is not recommended.

As soon as the Apple TV plays the opening video (after the final restart), you will be returned to the main menu. At this point your new software should be installed, enabling you to start using the new features.