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I can confirm that I tried changing the sorting tags last night as well, and it also didn't work for me. I hope Apple comes out with a fix very soon. It's not a dealbreaker, but it's annoying for sure.
 
It's a deal breaker for me. I already own a AT2 and was going to upgrade. I have 4tb worth of TV Shows on iTunes and trying to find the correct show and season is now impossible. How could Apple get this so wrong? Surely it was tested? I haven't used my ATV since the upgrade because it just frustrates me.
I would downgrade iTunes but apparently the new iPad wouldn't sync and neither would the ATV3 if I bought one.
 
A welcomed unexpected fix. Everything is in order for me, specifically my breaking bad seasons.
 
With the 10.6.1 update the tv shows are finally in order. But they are listing them as individual seasons. Instead of "The Simpsons", we get "The Simpsons, Season 1", "The Simpsons, Season 2", "The Simpsons, Season 3". This is unacceptable. If I want to watch a particular episode of the Simpsons, I don't want to have to look through every season to find it. Just give me a long list of episodes for each show.
 
With the 10.6.1 update the tv shows are finally in order. But they are listing them as individual seasons. Instead of "The Simpsons", we get "The Simpsons, Season 1", "The Simpsons, Season 2", "The Simpsons, Season 3". This is unacceptable. If I want to watch a particular episode of the Simpsons, I don't want to have to look through every season to find it. Just give me a long list of episodes for each show.

That's how it has been since they moved the AppleTV platform over to iOS. Not saying it is right or wrong, but it isn't anything new.
 
With the 10.6.1 update the tv shows are finally in order. But they are listing them as individual seasons. Instead of "The Simpsons", we get "The Simpsons, Season 1", "The Simpsons, Season 2", "The Simpsons, Season 3". This is unacceptable. If I want to watch a particular episode of the Simpsons, I don't want to have to look through every season to find it. Just give me a long list of episodes for each show.

In my opinion, that would be a terrible way of displaying them. With something like The Simpsons you could literally have a list of hundreds of shows.

I may be wrong, but I suspect that you would be in a minority wanting it displayed like that.

I've seen many people stating that they would rather have the seasons nested (i.e. Just The Simpsons, and then the individual seasons listed as a sub-menu) but I can honestly say I don't recall anyone else suggesting one long list.
 
With the 10.6.1 update the tv shows are finally in order. But they are listing them as individual seasons. Instead of "The Simpsons", we get "The Simpsons, Season 1", "The Simpsons, Season 2", "The Simpsons, Season 3". This is unacceptable.

That's how it displays in iTunes itself.
Why should the ATV display it any differently?
 
I am a big supporter of windows platforms. Currently hand built a windows home server and set up network sharing. I have PS3 and Xbox to stream but they are tripping out when I update folders and their interface is just sloppy. Bought ATV3 and am now converting with handbrake to .m4v and auto tagging through iHomeserver. I am impressed with the results but its just time consuming.
ATV3 is worth the quality interface and simplicity as well as accessing time vs game systems is half.
so in all, any iPad, iPhone or ATV in my home wifi has quality sorted shows with excellent meta data, I can remote access my shows through whs remote site and stream them on the go over my laptop.
 
I am a big supporter of windows platforms. Currently hand built a windows home server and set up network sharing. I have PS3 and Xbox to stream but they are tripping out when I update folders and their interface is just sloppy. Bought ATV3 and am now converting with handbrake to .m4v and auto tagging through iHomeserver. I am impressed with the results but its just time consuming.
ATV3 is worth the quality interface and simplicity as well as accessing time vs game systems is half.
so in all, any iPad, iPhone or ATV in my home wifi has quality sorted shows with excellent meta data, I can remote access my shows through whs remote site and stream them on the go over my laptop.

What exactly do you mean by "quality sorted shows"? Because for me, the way AppleTV is now displaying TV Shows (Home Share) is just unacceptable. It's either: The Simpsons, Season 1, The Simpsons, Season 2 etc. or: The Simpsons - loooong list of episodes.
 
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