Why is my Apple TV cutting out when watching TV and Films?

Hi there, will try to provide as much info as possible but let me know if more is needed.
I have purchased the newest Apple TV (March 2012) recently, and have noticed that it cuts out when I'm watching films and TV shows, but never when I listen to music or the radio. My friends have also noticed they cannot play youtube videos off their iPads onto the apple TV. When it cuts out, it does not say "cannot connect to iTunes" or anything similar to that, it just returns to the home screen and then we can select the computer and TV programme and resume playing as normal. This happens every 5-10 minutes during a show/film though and does get incredibly annoying.
Originally I felt it would be a network problem. We have BT Infinity and the Home Hub 3.0, and I am aware that lots of people have issues with this. However this problem doesn't happen on any other device, nor when playing music. It is specifically when watch movies and TV shows. I have actually swapped the home hub device for a Netgear Cable Router back and forth trying to see if it ever made a difference, and the same problem is still happening therefore I do believe it to be a problem with the Apple TV.
I have checked the troubleshooting advice for the Apple TV and followed that and nothing seems to have helped (unplugging various bits, making sure i'm on the right channels etc.).
In short I have literally no idea what could have happened and what to do about this, and before I actually rang apple I wanted to know if anybody new anything about problems like this and how they can be resolved.
Many thanks.
PS it is also worth noting that on our homeshare, we can no longer access one of our friends iTunes, despite it being visible it never loads and is invisible to the Apple TV. This also baffles us and we are not sure if it is related!!
Can;t think of any other details but let me know!

I have three Apple TVs at home (one 2nd Gen and two 3rd Gen).  I have not had this issue.  Worst thing that happens is it will not load my content from iTunes after waking it up, so I reboot the Apple TV and that fixes this.
My Dad has a 2nd Gen and it has started cutting out or dropping during playback of movies from iTunes and Netflix.  I tried restoring it over WiFi and also directly from his iMac running Lion and the version of iTunes previous to the latest that changed the iTunes layout (Not sure of the version), but it would fail saying the download was corrupt.  I even downloaded the .ipsw file and tried manually restoring that way, but it failed as well.  I purchased the USB cable for Apple TV to do this.
I just took it home tonight and tried restoring on my iMac running Mountain Lion and the latest version of iTunes and it worked.  I will bring it back to my Dad's and test it there.  I will post the results.
Maybe try this and see if it works.  I noticed that doing it through iTunes that it said it restored the latest version of OS for Apple TV and also the Firmware.
None of the Apple TVs mentioned have been Jailbroken, so not sure if this would be causing issues for anyone else.  Just trying to rule out anything I can think of.
I didn't get a chance to try this next step, since restoring from my iMac worked, but this was going to be my next step:
<Link Edited By Host>

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