Hi
I am having exactly the same problem. Option 1 wont play any music or video and films that are purcahsed or in . If I use 'computers' section i can play films and music no problem.
The problem goes away temporarily if I re-start but immediately returns after I have watched one film. I have done all of the checks around network, the signal strength is full, broadband strength (20mb), software updated and still when I try and play anything i get the spinning wheel going round and round while it tries to load
More confusing is that I can play preview trailers on i-tunes store through the apple TV, it will even let me rent films and play them but purchased stuff in my i-tunes library in option 1 wont play for love nor money!!
We have another apple TV in another room that works just fine, no problems at all. The one that works fine is right next to the wireless router, but I have checked the apple Tv that isnt working - the signal strength is at maximum?!??!
Any ideas - as I am flat out of tests to run?
Many Thanks in advance
Simon