Is the Apple TV capable of being just connected to my hi-fi as a jukebox for audio only? I may later expand to TV connection, but initially I just want music. Do I just take the audio out via the phono sockets ?

Thanks in advance. 

Just to clarify, I intend to use it with the ipod touch and have this as my screen rather than the TV, so I am anticipating that the two will communicate without the need to have a TV connection and the TV on.

The Apple TV needs a TV to be set up in the first place, but after that it will behave like an AirPort Express if you enable it to do so, so you can connect to just the audio outputs.

Thanks Alex - appreciated.

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One thing though, I assume my Beovision3 won't be able to accept the video signal from the Apple TV, in that case just for the purposes of set-up only could I do this on a friends set with the necessary connections or would it be necessary to access the video output quite often for adjustment purposes? If the latter, then it's not really feasible to keep using their TV!

No, you shouldn't need to adjust it. You will choose music through iTunes on your Mac/PC, choose 'Apple TV' from the wireless speakers menu which will appear in the bottom-right of iTunes, and the Apple TV will start playing music. You can then control this with your iPod Touch/iPhone as if you were normally controlling iTunes.