The patchstick is a image for flash drives to enable the recovery mode on the Apple TV and put SSH, ATVFiles, Perian (codecs), CouchSurfer, nitoTV, and Sapphire on the system.
Boxee is a fork of XBMC specially tailored and focused on the 'social web'. It requires a Boxee profile and the main component is based on recommending items from friends.
To set it up on the Apple TV, a very handy utility called atvusb-creator makes it very easy configure SSH, Boxee, and XBMC. It's done by creating a USB drive with the required files, plugging in the patchstick on the Apple TV, restart, and wait for the installation to complete (Linux based).
A new menu item will be added to the main Apple TV menu, called Boxee/XBMX. It works on software version v2.1 and v2.2, possibly earlier versions too.
Reset resolution Press and hold both Menu and Menu up/scroll (+) on the Apple Remote for about 6 seconds. Apple TV will cycle through different display resolutions.
Restoring to factory settings Press and hold both Menu and Menu down/scroll (-) on the Apple Remote for 6 seconds or until the status light blinks amber.
Pair remote Pressing and holding Menu and the Previous/Rewind (<<) button for 6 seconds.