If you are using HDMI then your tv also supports HDCP. I do think it was odd of the apple tv to throw the error on pausing. Maybe it somehow lost it's link with the display and could not successfully handshake again. Of course why it only affected that one movie is a good question.
I think you got this one right on the handshake. After about an hour or so I was able to watch the movie again.
It was interesting to see that some movies worked and some didn't. For example The Dark Knight also did not run, while others did. Shows you that the HDCP protection isn't on all of the movies.
I also got a response from Apple, which was kinda funny.
Jessica here from the iTunes Store. I can certainly understand how this could be disappointing for you. I can appreciate how eager you must be to resolve this issue. I'll do everything I can to help you out today.
HDCP is built in copyright to the hard drive of the new Mac Book and Mac Book pro, it is more copyright protection, you have to connect to a compliant HDCP compliant monitor/display. Sharp Aquos TV is not compatible with the new Mac Book and Mac Book Pro.
This must have been a copy/paste statement as I didn't inquire about either the notebooks, but about the Apple TV. What's more I had checked with Sharp and the Aquos does support HDCP.
Can't wait for my support survey from Apple.