I'll chime in with my issues as well. I bought the AppleTV 2 just after launch, didn't have any issues with it until one of the updates (don't remember which one to be honest). Since then I have assumed it was due to the wireless from an older router and all of the other wireless devices in the house. Last night I decided to try and fix that. I ran new LAN cable and set up a switch for the entertainment center. Fired up the AppleTV, made sure it was connecting via wired LAN and then tested through Netflix, still having the same issue. It plays for a few minutes, then pauses for about a minute, then plays again...rinse and repeat.
I then set a manual IP address on the AppleTV and set that to the DMZ on the router to see if it would help, no dice, same issue. I'm 100% convinced it's not a bandwidth issue as my Xbox 360, PS3, iPhone and iPad stream the same movies with no issue and I am getting between 10 and 14 Mbps steadily.
I hope they get this resolved soon, Netflix is a huge hit around my house...