Apple TV2 - Blue Screen

Last night I was controlling my AppleTV2 using the remote app on my iPhone 3GS. I have a 32' Toshiba HD TV.

I stopped watching one film, navigated to another and once I had selected the new film, I was left staring at a blue screen.

I checked my hdmi connections - they were fine.
I checked my mac - it was still running, itunes open, all ok.
I checked my network - wireless was fine.

But still I had the blue screen on the TV.


So, I just rebooted the appleTV2 by removing turning it off and on again at the plug.

It started up fine and was back to normal.

Then, five minutes later, still using the iphone remote app to control it, I perform the same actions again. Start film, stop, navigate to new one, start it. Again, I was left staring at a blue screen.
Again I did the basic checks. No luck.

So re-boot again by turning plug off and on (why didn't they include a power switch!).

This time, I repeat the actions using the supplied appleTV2 remote control.
No issue. It works fine.

So, what on earth is going on?
Has anyone else seen this issue?

Any advice greatly appreciated,

Cheers

Jeremy