Kanex ATV Pro experience

Has anyone else had the experience of video dropping from using the Kanex ATV Pro with Apple TV?

I just picked one up at the Apple Online store. The Kanex ATV Pro (http://www.kanexlive.com/atvpro) is a 3rd party dongle that plugs into the hdmi port of the Apple TV and splits the audio onto a female 1/8 and the video to VGA (for then connecting to a projector). (You see, I own a projector, but not a flat screen TV or other HDMI-input display).

Anyway, things were working well for the first couple days but now I get these random drops of the video feed from the AppleTV. The projector goes blue screen for 2 seconds then the feed is back. Completely random too. Sometimes as often as 30 seconds. Sometimes as long as 3 minutes. Makes the AppleTV completely unusable.

So my question: is the problem the Kanex or the Apple TV? I have reinstalled (restored to factory settings) the OS on my ATV but that didn't help 😟

I will continue to fiddle with things to see if I can get stable performance again.

thanks