Vudu is making some moves to keep in strong competition with the yet-to-be-released second version of AppleTV, this time offering a software update and more high-def content. This software update to version 1.2 comes not much more than a week after Vudu gave their system a 25 percent price cut bringing it down to $295 and closer to AppleTV’s $229. AppleTV had recently announced the “take 2″ version will add on features that will allow users to download video content to the appliance without the need of a computer in between, which is a feature that Vudu possessed and AppleTV did not.

The recent software upgrade for the Vudu video system brings some new features to improve user experiences with choosing videos to download. A new indicator will evaluate the current broadband speed and indicate if the selected video will download and show well without any skips or extended delays. When searching for a video it can also recommend titles for instant start based on the connection speed.

It appears that Apple is now taking orders for their new Apple TV for $299 with free shipping, although the device will not ship until February. If you plan on ordering one, here is a quick rundown of what you’ll get for your $300.

The actual Apple TV is pretty small, measuring a mere 7.7 inch square and being just over 1 inch tall, weighing in at 2.4 pounds. True to rumors before the Apple TV launch, it does contain a 40GB hard drive, and it runs on an Intel Processor.

The device is compatible to stream video content wirelessly across any 802.11g/n network, but of course they recommend the Airport Extreme. iTunes 7 is also a requirement to get your media for the Apple TV, of course.

The small device has a number of interfaces including IR for the included remote control and of …