Apple has released an updated for the second generation Apple TV today. The updated software includes stability improvements plus few bug fixes. Apple TV 2G 4.2.1 is based on the latest iOS 4.3. The update contains screen flickering, color display, wake from sleep issues etc. It also address stability and performances fixes.
This is what the company tells us about the new software update in support document.
TV compatibility: Addresses issues that may cause the screen to flicker or display incorrect color on some older TVs.
Wake from sleep: Addresses an issue where Apple TV may not wake up from sleep.
Audio: Addresses an issue where audio may not be heard on some TV models after switching from another input.
Stability and performance: Apple TV Software Update 4.2.1 includes stability and performance fixes for Apple TV
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