Play on ATV2 from HDD hooked up to router

WD N750 router with 2 USB ports.
Infuse can see the drive as SMB share but gives strange timeouts randomly, even when testing connection.

None of the videos can be played, give a playback error. Tried MP4 (iphone video), MKV, AVI…all same error.
Metadata looks good, it downloads info and posters for each movie.

Router storage set up as both Share (SMB) and DLNA.
What can be the issue?

Running ATV2 5.3 tethered with atvflash 2.3 

Are you connected via a wired or wireless connection?

If you get a chance, sending in a bug report may help in tracking down what’s going on.