Thanks for all the replies. I already own one of those Apple univeral ipod dock with a RCA type cable that you can connect to hi-fi systems. I was hoping to use that and connect to one of the AV sources on the BV7 (if possible) to distribute music via ML speakers. I will be happy even if I cannot control the ipod with my Beo4 remote since I will be playing either playlists or shuffling songs without the need to control my list (but will the PUC codes for apple TV/remote also work on the dock since it can be controlled with an Apple remote anyway?).
The Toslink adaptor seems interesting so does that mean all I have to do is connect a digital sound cable from the apple TV to the adaptor, and then a RCA cable to one of the AV sources on the TV? Will that confuse the TV since both HDMI and RCA are connected to it? e.g. will it activate both the apple TV on my TV as well as my link speakers if I activate the ATV2 on my link speakers?
The system dock is probably closest to what I had intended to do with my ipod dock with the added benefit of displaying the content on the TV, but I wonder how much it is going to cost and if it is worth paying the extra $$ for something the ipod dock can already do at a fraction of the cost.