My situation is most like Shane.
I have 1 Apple TV connected via the HDMI output to a Marantz AV receiver, and the optical output from the same Apple TV is connected through a DAC to a Russound amplifier so that I can stream audio from my iphone or ipad to rooms throughout my house. This worked perfectly until the update to 4.4.0, and no improvement with 4.4.1.
When I activate the Apple TV through the AirPlay on my iPhone, and the AV receiver is off (ie. the HDMI output is not being used) and try to stream music through the optical out only, I get nothing, at first. Then I can toggle between music playing on my iphone and the ATV, and after 1 or 2 toggles, I'll get static hissing, and in the background in poor quality, I can hear the original intended music.
But here's the part that matches Shane... when I turn on the receiver (ie. activate the HDMI), all of a sudden, the optical output works perfectly, and the hissing dissappears. I can at this point turn off the receiver, and the optical output continues to work properly until the ATV is turned off again. Of course, having to turn on the receiver in my living room defeats the whole purpose of having a muti-zone system connected to the ATV.
I've tried changing the audio settings, including Dolby setting to no avail.
Hope Apple corrects this. I had a sweet setup before! My wife thinks I should just buy a boom-box. Sure would be easier, but not nearly as cool/nerdy!