Hello, my name isXXXXX will stay with you until the problem is resolved.You can probably store a lot of data on it such as iTunes and movies. As for using it like a time machine I do not think that is possible. It can function as an expansion to another location that you can stream two from the new Apple TV if I got the specs right . My suggestion would be to try as many different things with it as you can imagine but probably put in it in a different location will use it to its best advantage.
You would be better off going to apple.com and looking at the new Apple TV and the old one and see exactly what your options are. I would think though that it would be an asset in another location because it simply is not set up to do what you are thinking.