What does iTunes mean by “renting movies”?
According to Apple: “Rent a movie directly from Apple TV and you have 30 days to start watching. Once you hit Play, you have 24 hours to finish it — or to watch it as many times as you want. Movie rentals disappear when they expire, so they won’t take up storage space. From the Rented Movies menu, you can see when your movies are about to expire.” So basically, you download the movie and watch it. When your rental time is up they delete themselves (on your ipod, they delete the next time you sync, but can’t be played after the time period).