While there are a number of peripheral issues in resolving the "Netflix Problems" (like network speed, DNS settings, wired vs. wireless network connections, interference, etc.), I believe we are looking at a set of interrelated problems:
1) The time of day we are viewing the films/programs via the ATV,
2) The demand for the film/program being viewed and
3) How the ATV handles the Netflix feed.
I say this after spending at least 10 days of pretty intensive testing of potential solutions.
Last night, having eliminated a number of minor possibilities (rebooting the ATV and replacing the HDMI cable, neither of which resulted in any noticeable improvement), I ran 3 different programs from 7:30 p.m. until 11:00 p.m. EST: a Second Season episode of "Lie to Me" (a popular TV series), a National Geographic documentary, an HD iTunes firm.
The performance of the ATV "Lie to Me" Episode was awful when viewed at 7:30-8:30, with more than 30 interruptions. I watched sections of the same episode several times later during the evening. Each session experienced interruptions, although not as many as during "prime time".
The National Geographic documentary streamed virtually without interruption. All were at the outset of viewing it. Note: I stopped and then resumed this documentary several times, mostly after 9:00 p.m.
The iTunes film likewise streamed virtually without interruption, although it too experienced interruptions at the outset of viewing it, 3-4 in the first 2 minutes. Here too, I stopped and resumed the film several times, mostly after 9:00 p.m.
To recap, all of the videos experienced interruptions, the latter 2 mostly during the initial minutes of viewing them. Neither of them could be described as in great demand. Not so the "Lie to Me" episode, and during every viewing it had interruptions, particularly during prime time, when the number was absolutely unacceptable.
I intend to report this to Apple Care, which has worked diligently with me, and to Netflix, which has not yet done so. If I don't get any resolution, I will be looking to return the ATV and suspend the Netflix subscription until I have a functional device attached to our HDTV.