New to Apple TV - do they all crash and freeze like this?

I have had mine for about 10 days. I have had it freeze (and do the diagnostics/restart) about 15 times.
I am starting to get the hang of it. It seems to hate a bunch of my videos (encoded home movies mostly - used Handbrake and VisualHub's Apple TV setting). I can get it to crash 'on demand' on a few videos.
What gives with the crashing? Can't it just choke on a video and refuse to play? Many times the crashing does not seem to be specific to a video though.
I have tried the diagnostics - it reported that it was fine. I tried the system restore .. still having trouble. I am thinking if I restore it again I should stick to the first firmware (ie: not update). Might that help?
Things are working better with the sync'ing now that I know that iTunes must be open - and I disabled the Windows 7 firewall rather than just poking the hole for the port Apple was requesting.
Anyway - I am really disappointed. The iPhone remote is great, I love having my iTunes library in sync - but lack of 1080p and these crashes are driving my family crazy. I am probably gonna return it, but hoping for some ideas...

do they all crash and freeze like this?
No, they don't.
Take a look at this document to see what formats are supported and how to properly convert them.
http://support.apple.com/kb/HT1532
This next document is very specific as to the formats that will play.
http://support.apple.com/kb/SP19
iTunes has the ability to convert movies to the proper format. So does Quicktime Pro. For the record, though, I have converted a number of videos using the Mac version of Handbrake and have had no issues what-so-ever playing those files.
Message was edited by: lkrupp

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