Audio dropouts with Apple TV 2

I bought an Apple TV 2 yesterday. It is wired into a Belkin wireless N ADSL router, along with an xbox, and my Mac is connected to the router via wireless N. My Mac is set up with iTunes Home Sharing, and also runs a DLNA server that I use to serve up video and audio to my xbox. The xbox does this flawlessly.
The Apple TV audio out put drops out regularly, several times minute. This is streaming music and video from the Mac, and also when watching previews of HD movies from the iTunes store. The video keeps playing, interestingly, it's only the audio side that seems to suffer.
As the xbox works fine, I don't believe it is the wireless connection between the Mac and router.
As content from both my Mac and the iTunes store suffers, it's looking like an issue with the Apple TV itself.
All my devices have fixed ip addresses. I have tried switching Dolby on and off on the Apple TV, but it has no effect. My Apple TV told me there was a software upgrade available shortly after I plugged it in, and I let it go ahead. It reports version 4.1.1.
Can anyone suggest a solution? Is this a problem that others are experiencing?
Thanks,
Mike.

Well, having tried everything I could think of, it looks as though the problem is all down to a faulty optical audio cable! So, nothing to do with Apple TV at all

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