One way I found to avoid the static on start up when using an ATV-2 with my Insignia NS-LTDVD26 LCD TV/DVD Combo via HDMI, is to never update it. After updating, a problem with the aspect ratio changing during steaming videos from Netflix stopped for me, but the static started. For me, even after the update, the static clears after moving the cursor around for a few seconds. As a work around I start the ATV first and move the "would be cursor" around for a few seconds, then turn on my TV, this usually avoids the static problem, as it has usually cleared by the time the TV is powered on. Perhaps not the best work around, but the best I know of so far, since muting has little effect. The reason I know it is the update causing the problem, for this TV model, is that I took the ATV back to the Apple Store because of the static, and they replaced it with a new one. I used the new one for several weeks without updating it, and had no static problems, however did have a problem with the aspect ratio changing during streaming Netflix videos. As with my first ATV, soon as I updated it, the aspect ratio problem stopped, but the static problem came back.