icminc has some good reasons to think his Netflix issues are an Apple TV update problem, but I really think he is barking up the wrong tree. I just watched a Netflix movie on my updated ATV3 last evening with no problems, as usual. It's convenient to blame Apple for this, but I don't think it will solve the problem.
Apple TV/Netflix issues can invariably be traced to the quality of the wireless/internet connection, considering speed, and interference from other wireless systems nearby. I know, because I went through this myself (see my post three above). If you have a marginal internet connection possibly the latest ATV2/ATV3 update exacerbates it, but I'll still bet the wireless/internet connection is the culprit.
Have you checked your internet speed using the free iPhone/iPad Speedtest app? If you don't have at least 6mbps you will have problems (I have about 30mpbs). Also, are you sure a neighbor's wireless system isn't interfering with yours? The free iStumbler app for your computer can give insight into that. Or possibly a wireless telephone in your home? These are all classic wireless interference problems which can cause your problems.
I'm not here to defend Apple on this, but to suggest a solution. When I really looked into it at my house the problem was with my wireless/internet system. Forgive me if you already know all of this stuff, but hope this helps.