Yup, the Apple TV has "Update Automatically" set to "On". And it was one of the devices that I cycled, so I would hope that it's up-to-date.
A further bit of information FWIW: I have a network extender and had swapped over to the extension network. I was able to watch a whole movie I had stored on the iPad, and thought the issue was solved, largely being an issue of signal strength. I tried another one, though, and got dropped like a hot rock in less than a minute. The one that played nicely was an MP4, and the one that got dropped was an AVI. I tried another MP4 movie, and it played for several minutes before I stopped it. Perhaps ththis has something to do with MP4s being based on QuickTime. I haven't tried the audio again since swapping to the extension network. I was just happy to watch a movie for more than a minute. However, only being able to watch an MP4 would be ... bad.