Not just Breaking Bad... it's everything. I tried watching Red Dawn last night which just came out and is not in My List on Netflix.com so I wasn't able to compare to my TiVo account's Netflix service which doesn't allow you to add anything to your My List.
However, I *did* have The Dictator (the newer one from Sacha Baron Cohen) in My List. I played that on my AppleTV and it played, just like Red Dawn, horribly after about 5 to 10 seconds. Then I switched to my TiVo. When I played The Dictator on my TiVo's Netflix account, the quality was PERFECT. I went back to my AppleTV and tried playing The Dictator there... and once again, it went to horrible picture quality.
I have my AppleTV connected via *ethernet* to my Apple Extreme router which is connected via ethernet to an Arris cable modem provided by Comcast. I have their Blast service which is 50mpbs and up.
When I run the troubleshooting connection "Test" on AppleTV, it usually takes about a minute or two and simply says it's done. How is that useful? Not very. The first time I did it, it said it had trouble connecting and to try again.
I wonder if there is a problem with the AppleTV hardware itself. I honestly can't see how it's a Netflix issue.. unless Netflix is responsible for their software-hardware interface on each device and they introduced a bug or something.