"The Selected Video could not be played" error after latest software update

After the latest software update for the Apple TV I've come across an interesting problem that's driving me crazy.
In a nutshell:
- I can rent movies and watch them.
- I can watch video podcasts.
- I can watch TV shows purchased on iTunes and streamed from my mac
- I can watch TV shows ripped by myself and streamed from my mac
- I can watch movie trailers
- I can watch YouTube videos
- I can watch a movie purchased on iTunes that has been synched to the Apple TV
- I can watch a movie ripped by myself that has been synched to the Apple TV
- I CANNOT watch a movie purchased on iTunes but it's streamed from my mac
- I CANNOT watch a movie ripped by myself that is streamed from my mac
Whenever I'm trying to watch a movie streamed from the mac I get the following error message:
"The selected video could not be played. The format was not recognized"
These are movies I could watch perfectly well before the software update, and I could perfectly watch them streamed from the mac.
Any clues as to what could be going on? Any help or hits will be greatly appreciated.
Many Thanks,
Julian

I am having similar problems. Rolling Apple TV back to 2.0 fixes it, but then I deal with the 2.0 bugs.
Basically, I've tried this three times so far: reset back to 2.0. Resync everything I can(I have about 500gb of video which is stored on a USB drive, but I selectively sync part of my library and all my music).
I have about 40gb free on the 160gb ATV. Everything plays fine - synched music, synced video, streaming video. My types of video are:
- iTunes purchased
- Ripped using handbrake to h.264 standard stuff (plays fine on my iphone and computer)
- downloaded h.264 "ipod compatible"
- converted video using iSquint
After upgrading to 2.0.2, initially everything plays fine. But the MOMENT I sync something new to the ATV, then it all falls to crap.
- itunes purchases play fine (synced and streamed
- iSquint converted videos play fine when synced, won't stream "The selected video could not be played" bs)
- Handbrake rips can play if sync'ed, won't stream
- downloaded ipod compatible will usually play and sync.
Doesn't matter if they're movies or tv shows.
*All of these played fine before the "upgrade" (some upgrade).* After the upgrade, and after the first post-upgrade sync, it falls apart.
Talking to Apple support about this results in the usual BS. Unplug your ATV. Resync your purchases, We don't support third party software yada yada.
All I know is, Apple broke something with 2.0.2. Either something to do with a USB drive access, or something to do with one of their stupid new flags in quicktime, or whatever. It needs to be fixed.
Going back, once again, to 2.0 until this is recognized and fixed by Apple.
Mark

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