Just downloaded the latest (12/16) build of ATV Flash, and tried playing my first DVD today using the nitoTV.
It goes straight to the first chapter of playback, bypassing the menu structure completely. It then only plays the first episode (or chapter in the case of a movie), then goes back to the AppleTv menu. From what I can tell, I do have the menus enabled (although the preferences look a little different this version). In some cases the screen just goes to black and all that plays is sound.
Am I missing something?