AirPlay Problem

This is a weird one -perhaps someone can help. Using atv2 flash, latest version with AirPlay video coming from an ipad2, when I go to stream an iPad video to the atv, I select the apple tv device in the video window, and the iPad gets the grey screen and the aple tv picks up the signal and starts to play - with sound as it should - for about 2 seconds and then the video flips back to the iPad, and a dialog box comes up saying that the speaker “apple tv” is busy, something like that. Is this perhaps an atv flash issue, or an airplay issue? The appletv passwords match between the two device.