Apple TV2 picture keeps dieing

I have had my apple tv 2 for two weeks. To start it worked fine and the content look amazing.
About a week ago it has started to drop it's video output via HDMI.
It does it on all content videos from Mac, Podcasts and Netflix. It also drops in the menu screens too. It does recover and displays the picture again
At the sime time when it drops the led flashes once. The TV displays that it has lost signal and then when it comes back it the tv shows that a signal is back.
After about 4/5 times of it cutting out. It then crashed, drops pictures and the led flashes 6 times.
Is there anything I can do to stop this?

Take it to Apple

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