i’m in the same boat. i believe i’ve followed all recommendations in this thread. my story is a bit different, though, and may shed some light on my situation:
i downloaded and installed the current version of atvflash on october 11. after a bit of bumbling about i was able to play media in video_ts folders across the network sitting on one of my macs. this worked for several days without much problem.
today, after getting part of the way through a particular title, i hit the menu button and the movie kept playing. i hit it several more times, and play/pause as well, and eventually the atv appeared to restore itself from a backup - apple logo with a progress bar just below it.
following that, i no longer had dvd/xbmc on the menu. after a few reboots and head scratching i finally just booted from the original atvflash and rebooted as i did the first time. the network configs, including smb mount definitions, are untouched. i am able to navigate to the mac and see the video_ts folders just as before. but now, i have the same issue as described previously in this thread when attempting to play from one of these folders:
/!\ An error occurred.
Press Play/Pause to restart your Apple TV.
please help me get out of this hole; this capability was the reason i purchased atvflash, and indeed, the appletv. without this capability have no need for either.