Streaming YouTube not working

I have installed the software on my Gen1 AppleTV and followed the setup guides with every device connected to the same network.

Tried testing by playing a video from iPad - YouTube but it does not stream to the apply TV properly. The 'Apple RHD' icon is there on my iPad and I select it but this only streams the audio from my iPad-YouTube-AppleTV-TV so I hear the audio on the TV and view the YouTube video on my device...

  1. Should there be another icon other than Apple RHD to enable the video to stream to my TV?....

On the iPad if I leave Apple-RHD activated in YouTube and play music from my iPad iTunes Music library / Music app it plays through the TV rather than the device for some reason and I cannot find an AirPlay button to deselect this within the iPad Music app (default pre installed Music app). Going onto AppleTV-MYMusic there is nothin in any of the sections because I have only synced AppleTV with my iMac iTunes library which is powered off.

  1. Should AirPlay show in iTunes Music on the iPad?
  2. is there a way to sync iTunes library's between iPad and AppleTV?