The Model A device features a 700 MHz ARM 11 processor, 128 MB of RAM, and HDMI, RCA Video, Audio, USB 2.0, and SD Card ports for just $25. The Model B device offers an Ethernet port and a bump to 256MB of RAM for just $35.
Dom, a developer behind the project explains how AirPlay works:
A small AirPlay service runs in the background and announces itself (using Bonjour) as an Apple TV2. This means when playing a video on an iOS device, an Airplay menu option becomes available to send the video to that device.
The R-Pi does a little communication with the iOS device and gets an http URL to play. This may point to the iOS device or the internet. The media player on R-Pi plays the video from that URL.
Main production of the Raspberry Pi is set to begin this month. You can learn more about it at the link below...
Read More [via CultofMac]