I must agree - "color leaks" dosn't ring the bell.
but let's try it with a few questions
is the Apple TV "jailbreaked"
if yes - what did you use?
does the "leaking" happen only with videos or also with the menus?
what about youtube ?
any recent updates ?
there are a few jailbreak related things that could provoke something like a "color leaking" - but that would be a codec/decoding problem - that's why i'm asking about the jailbreak.
i would first try to restart the device, then a reset and if nothing helps - "restore" or upgrade the operating system (or so called firmware)
if you jailbreaked it - the changes would be lost - think about the firmware version you are trying to install - not that you won't be able to use the Apple TV as it could be used - if you didn't jailbreak your Apple TV - nevermind - you won't miss anything ;-)