Problem streaming music with New Apple TV- Anyone else?

I am new to Apple TV.  I have been using a Sony BDP580 (DLNA) to stream my FLAC digital music via a wired LAN.  It works flawlessly.  I just got the new Apple TV for streaming. I set it up and home shared with my Itunes library containing AIFF digital music via same wired LAN.  It sees everything but each time I start a song, it plays for about 35 seconds and then starts studdering and hestitates, finally stopping altogether and displays an error message saying, "An error occurred loading this content.  Try again later."  This happens everytime, with any song I select.
I assumed this was a buffering problem, so I tried same songs again but this time paused them immediately after starting the song.  If I paused for 15-20 seconds, I got about 2.5-3 minutes of music before it did it's studdering thing and stopped altogether.  If I paused for 90 seconds or so, I could get thru an entire 10 minute song.  Seems to confirm a buffering problem.
I have not tried streaming MP3's yet but that is not my intention.
I realize that the software is new but this is basically unuseable as it currently functions. I am considering trying to return the the Apple TV.  Are there similiar  kinds of problems when new Apple TV software is released?  If so, is Apple quick with fixes and updates? 
By the way, I also got a new IPAD and love it. 

I have an older PC with Windows XP Professional on it. I updated to the latest iTunes and I am able to access the photos, etc. on it. However, my Windows 7 PC still does work (since last Apple TV update). Apple TV does not recognize that Home Sharing is turned here. The latter PC has all my current photos on it which I would like share with others on my Apple TV. A fix would be appreciated.

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