ATV on-the-go saved playlist crashes iTunes - any ideas?

Apple TV has the latest 2.3 software update.
iTunes is the most current (just downloaded).
Put a few folders into my library. Syncd the ATV with iTunes.
Added two songs to the on-the-go playlist with the ATV.
Saved the playlist and named it "Test1".
ATV works fine.
When re-syncing ATV and iTunes (or closed iTunes and reopened), iTunes crashes just as the ATV is recognized.
A pop up box from iTunes says: "iTunes has encountered a problem and needs to close. We are sorry for the inconvenience."
The "Test1" playlist does show under the ATV device in iTunes (you can see this as iTunes doesn't close until you choose "Send Error Report" or "Don't Send" from the pop up error box).
I've removed iTunes, and re-installed it.
"Test1" playlist still shows after sync.
I reset ATV to factory defaults which clears all music/playlists/photos etc (and also set it back to software version 1.o).
iTunes does NOT show the playlist now.
Upgraded ATV back to software version 2.3.
All OK.
Do the same with a playlist again on the ATV - problem happens again.
I've had iTunes set for "Custom Sync" the first time, "Auto sync" the second time. Same results.
Ideas anyone?

UPDATE: I reset my ATV and uninstalled/installed iTunes at least 3 times. Always get the "encounter a problem....must shutdown" error in iTunes if I save an on-the-go playlist on the ATV. This was with iTunes 8.0.2 (or 8.0.2.something) and ATV software 2.3
I went back to iTunes Version 7.7.1.11 and I'm NOT having the problem. So far, so good.
I think there is a real issue here. If anyone has done this with the latest ATV and iTunes and didn't have trouble, I would appreciate some feedback to that effect here. It would be nice to have Genius in V8 iTunes, but not with the playlist issue.

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