Choppy playback using Nito - AVIs and DVD files

Hi,

Ive just started to use my ATV again after a year or so and updated to latest aTV flash as per email from support but since using it again i’m finding that AVI’s and DVD media files stop for up to 5 seconds and even sometimes enough to stop the playback altogether.

It seems worse when the file is larger.

I Stream from my Apple Time capsule (2TB) via my network router using Ethernet so it’s not a wireless problem.

I tried an AVI movie  (1.5Gb) which was very choppy via streaming, put it onto a USB flash drive and it worked fine plugged directly into the ATV.

Any ideas on how to improve streaming via Ethernet?

Any ideas I guess many has a similiar problem?

Is it due to hdd or USB spec?