Rev 1 - with some spelling corrections
Exactly the same issue with me. I have 2 ATVs, 2nd & 3rd Gen and both are having identical problems with the optical audio out.
1. I spoke to Apple Support yesterday & surprisingly they have not heard about this issue yet. The advise was to restore the ATVs which I did but with no success...the problem persists.
2. Prior speaking to Apple I have tried putting the Dolby Digital to 'Off', 'On' & 'Auto' - neither of them helps.
3. I have tried changing out the optical cable that is connected between my BOSE LS & ATV - didn't help either.
4. I called up my friend whom had bought an Apple TV very recently, however he had connected his one with the HDMI to the TV directly & as expected just like when I tested in a similar set up, did not have any problems with the audio.
After I requested him to try his set up with the optical audio out through his Home Theater system (he has a Yamaha), he reported the same with no audio or at times, intermittent & distorted audio for a second or two.
This indeed is a problem & I hope this issue is trumpeted out for Apple technical team to look into & revert with a solution on the next update!
Thanks to anybody who might have any other idea as to how to resolve this....