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Apple just issued a 4.2.1 update to AppleTV that is meant to fix a few nagging bugs:

Feature Summary
TV compatibility Addresses issues that may cause the screen to flicker or display incorrect color on some older TVs.
Wake from sleep Addresses an issue where Apple TV may not wake up from sleep.
Audio Addresses an issue where audio may not be heard on some TV models after switching from another input.
Stability and performance Apple TV Software Update 4.2.1 includes stability and performance fixes for Apple TV.

4.2.1 Direct Download.

Also, Amazon is offering a 5% discount on AppleTV.  Apple has refurbished models for $85.

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