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I want itunes extras to play on my apple tv... I have yet to watch the extras for Karate Kid and Iron Man II...
 
I would like to chime in on the video stuttering with HD content (when buffer is full) issue, post 4.2.

From the material I have tested, it appears the issue has been fixed for me.

This is only a short term assessment as I have only had time to test 2 sets of source material that were giving me trouble prior to applying the 4.2 update.

Also, the subtitle issue on 720p material appears to have been fixed as well.

Only one of the subtitle bugs has been fixed ... the one relating to subtitles never displaying after any pause in the subtitling.

There is still a bug related to multi line subtitles which means you never see the second line of text. This is nearly as bad as you miss half the dialogue.
 
2. Watched/Unwatched now works correctly automatically.

Not for Podcasts! I'm actually quite bummed it wasn't fixed, because those are really what you want the feature for! Podcasts' have a nature of being updated with new content on different schedules than other Podcasts, so it's nice to quickly see what's new.
 
480p subtitles are still displayed with very tiny fontsize, making them unreadable from the couch.

720p subtitles seems fine.
 
I just updated my :apple:tv and tested music playback.

Playing music from the :apple:tv menu now increases playcounts. AirPlay from the iTunes source is no longer necessary to keep accurate playcounts.

Chalk one up in the "Apple got it right" column. :)
 
In iTunes, go to "Advanced > Choose Photos to Share". Then make sure "Include Videos" is checked. It is not checked by default.
 
Found a few more improvements. Video playlists now continue to the next one when played instead of returning you back to the main menu. Also song and artist information are now updated from Internet Radio streams. The About screen now shows the wifi channel, BSSID, and the output resolution to the TV. (The new Apple TV now allows for 480p output as well with the update for SDTVs and HDTVs that cannot handle 720p.)
 
Subtitles from HD media looks fine now, but from SD media (640 from my case) it's still very tiny and not readable from the couch...
 
Found a few more improvements. Video playlists now continue to the next one when played instead of returning you back to the main menu. Also song and artist information are now updated from Internet Radio streams. The About screen now shows the wifi channel, BSSID, and the output resolution to the TV. (The new Apple TV now allows for 480p output as well with the update for SDTVs and HDTVs that cannot handle 720p.)

I noticed the Internet Radio artist/title information accuracy myself. Before, getting the information at all was rather sporadic; it's considerably better now. This makes it easier to get info for buying tunes.
 
Anyone know if the update fixed the audio track selection screen to show both the track comment and language (Surround - English) instead of just the language (English)? I'm at work so I can't check myself at the moment.
 
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