In order to perform this tutorial you need a usb stick that has been freshly formated in Mac OS Extended (Journaled) format.
UPDATE***: I have posted an EASIER version of this tutorial HERE.
Connect your USB Stick to the computer.
Insert your OSX Tiger Install CD into the computer.
Download the Patchstick 2.0 prep files from here:
Small USB Stick (~1GB, 512MB)
Large USB Stick (~4GB)
Extract the folder Patchstick from Patchstick2.0.zip onto the Desktop
Download and install Pacifist from here
Launch Pacifist from your Applications folder.
Click the large Open Package... button.
Navigate to the /System/Installation/Packages directory on your OS X Tiger Install CD and select Essentials.pkg. The click the Open button.
On your desktop, open the Patchstick folder and navigate to the Files/System/Library/Extensions directory. Do this by double clicking on Files, then double click System, then double click Library, then double click Extensions.
Now we will copy a list of files from the Pacifist to your Extensions folder you have open. Use the Find bar in Pacifist to search for the name of the file and then once found simply drag it to the open Extensions folder.
As an example I will do the first one. Enter AppleACPIPlatform.kext into the find bar.
Pacifist will locate the file and highlight it.
Drag the file to the open Extensions folder. You will be prompted to confirm the extraction. Click the Extract button.
You may be asked for your Administrator Name and Password. Enter these then click the Ok button.
You should now see the file in your Extensions folder.
Do this for every extension in the list above until you have 32 files in the Extensions folder.
Now open the Patchstick folder from your desktop again. This time navigate to Files/System/Library/Frameworks.
Search for Kerberos.framework and copy it to the Frameworks folder...
Now in Pacifist open BaseSystem.pkg from the Mac OS X Install CD.
Search for and copy CoreFoundation.framework and IOKit.framework to your Frameworks folder.
From your Patchstick folder on the Desktop navigate to Files/usr/lib. Find these files and copy them to the lib folder.
From your Patchstick folder on the Desktop navigate to Files/usr/lib/system. Find libmathCommon.A.dylib and copy it to the system folder.
Download the Mac OS X 10.4.9 Combo Updater from here
Open the download with Pacifist. You will find a file called AppleIntelCPUPowerManagement.kext in the /System/Library/Extensions folder.
Open the Patchstick folder on the desktop again and navigate to the System/Library/Extensions folder. Drag the AppleIntelCPUPowerManagement.kext file from the Pacifist into here.
Download the AppleTV 1.1 Updater from here
Open the download with Pacifist. You will find a file called boot.efi in the Files/usr/standalone/i386 folder
Open the Patchstick folder on the desktop again and open the Files folder. Drag the boot.efi file from pacifist into this folder.
Step Twenty One
Open a new Terminal window by launching it from Applications:Utilities.
Step Twenty Two
Execute the following commands into the Terminal window:
chmod 755 /Files/boot.efi
sudo ./createPatchstick. If prompted for a password enter your Administrator password.
Notice the last command listed the different disks present. You must figure out which disk is for your usb stick. Mine was /dev/disk2. Now enter sudo ./createPatchstick /dev/disk2. (Make sure to remember to replace /dev/disk2 with your usb stick location).
You will now be prompted to confirm the partitioning of your usb stick. Type yes then hit enter.
The script will partition your usb stick and copy over the necessary files. This will take about five minutes. When done you will be told that your disk is now unmounted and ready to patch your AppleTV!!!!
THANKS***: Just want to say thanks to everyone who helped me out with this, especially ton, who was a great help!