mentioned in OPs original post is that cache and data were cleared.
if you have ever heard of "jailbreak" when it comes to apple products, then rooting for Android means the same thing. I wanted to make sure you did not have a 3rd party rom installed.
well when you say "other people in this area are not experiencing any problems" you can't be 100% certain of that. i understand some people around you may not have the issue. it could also be your account. you may need to deactivate all equipment form your account. then try re-adding your xoom by itself then re-try.
You have done all you can do on your end. since it just started a few days ago and based on your error, i thin its a netflix server issue. it cant be Android OS since you have been using netflix prior to this.
again, stay on netflix. call them and escalate. dont settle for " its an android OS issue" since especially you yourself has stated others around you dont have the issue.