Went to an Apple Store today - the first guy I spoke to had no idea and just kept looking at the settings menu on Apple TV - he then went off and his collegue claims it does. The first guy thought you could only use HDMI - he didn't even know it had component video outputs!
Let us know if it works - remember you will need an audio cable as well.
Forgive my ignorance, I'm abit of a novice when it comes to things like this. I have one scart socket on my tv, and I'm hoping that the scart adapter will work, but what sort of audio cable will i need?