My ATV Won't  Authorize Rented Movies..please help...everything else works

I recently hooked up my ATV to my network (with an Ethernet cable not wireless). It worked great..allowed me to purchase music, purchase tv shows, and synced great with my iTunes on my mac book. I can browse YouTube, watch movie previews. The problem is when I rent a movie the ATV will allow me to rent the movie...iTunes charges my credit card..i can even download the movie but when I try to play the movie i get the message "Your Apple TV is not Authorized to play this content." I spent two hours on the phone with Tech support and emailed back and forth with iTunes support with no resolution. I really don't think anything is wrong with the ATV but who knows. I even hooked the ATV directly to my modem (Charter Cable is my ISP) and got the same results. Very frustrating. Has anyone else had similar problems with their ATV?

Same problem - any/all purchased content EXCEPT rented movies will play on our new Apple TV2.
We have latest updates, we've tried multiple iTunes accounts, we've deauthorized/authorized, unplugged, factory reset, re-downloaded, removed 'special characters' form our passwords, turned of wireless on the Airport extreme, double checked my location is USA and is my billing address (see below...) etc. etc. etc. Have spent HOURS on the phone with Apple to no avail - they offered to escalate to engineering which would take another 3-5 days. The folks on the phone are pleasant, but it's clear they really don't understand the DRM model or have any other options.
So, the l reason I post is this - of those who can play purchased content (so we know the network, their accounts, etc. are all valid) but can't play RENTED movies - what do we have in common? Why can we order, pay for, and download but not play rented content?
Here's some nits I can dream up might be issues - any patterns out there?
* I'm using Verizon DSL
* I'm using an Apple AirPort Extreme (I gave up on the strict NATing of our Sonic Wall which seemed to break movie previews of all things....)
* We live in Washington DC (notably, not one of the 50 states - could it be that silly?)
* I don't think the anyone is proxy'ing all my traffic (ala man-in-middle attack) but at this point, who knows?

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