Apple tv 2 and airplay only registering as speakers.

Help apple tv setup fantastic streams my iTunes media from my mac pro upstairs fine. Having major problems trying to stream video from my iPad and iPhone 4.
All my iPad and iPhone only recognise my apple tv as speakers and not a screen. So all it will stream is music or the sound from the video.
Not a major problem, just annoying as if I download a film on my iPad or phone I have to sync and transfer the new purchases to my mac pro to then have to stream from my iTunes on the mac.
All the ads etc show that I should be able to start watching and then stream to. ATV2 and specs say the same. But I can't seem to solve the problem? Any help would be appreciated and many thanks in advance.
iPad videos app: just sound through airplay no album details or film details
safari web videos including you tube app same just sound no picture again
iTunes library all works ok, auuuggghhhh so frustrating. All software updates completed as it appears the most common suggestion.
Thanks in advance again

I had the same problem.
Try updating the software on you Apple TV. It should now give you the option to turn on Airplay under settings rather than just Airplay speakers.
I was able to steam video from my iPad after doing this, although when you do this the video only displays on the TV and not on the iPad display (which is different from the promo video.... I guess this is a work in progress.

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