Welcome to the Apple Community.
Intermittent problems are often a result of interference. Interference can be caused by other networks in the neighbourhood or from household electrical items.
You can download and install iStumbler (NetStumbler for windows users) to help you see which channels are used by neighbouring networks so that you can avoid them, but iStumbler will not see household items.
Refer to your router manual for instructions on changing your wifi channel or adjusting your multicast rate.
There are other types of problems that can affect networks, but this is by far the most common, hence worth mentioning first. Networks that have inherent issues can be seen to work differently with different versions of the same software. You might also try moving the Apple TV away from other electrical equipment.
Thanks for the advice I will try that tonight (currently at work). I know it's currently set to auto.
This is the post i found on the net which scares me: http://www.dslreports.com/forum/remark,26651604?hilite=airplay+broken about WLAN/LAN ...but I'm trying to keep my head up.
Note: I also owned a Pioneer VSX-822 for a couple of days with the exact same issue (but returned it for Denon). for other people searching issue with a Pioneer
Unfortunately, the Denon AVR-1613 (and therefore likely the whole xx13 series) has a very buggy AirPlay client implementation. Likely this is your problem. Some Google-age will reveal as much, alas too late for me. Often the unit will need a hard power cycle to get the AirPlay client happy again. I.e., unplug it, don't just use the soft power button on the front panel.
Common problems include simply dropping the connection entirely and having to switch iTunes back to computer speakers, then the Denon to make it recover; and hearing 2 seconds of music, 1 second of silence, repeat forever (requires a hard power cycle to fix).
Sorry, dude. Long standing problem, still no firmware update, so this is the last Denon product I will EVER buy. No one should treat customers like that.
After many test... I will now test if the issue is indeed a multicast WLAN to LAN issue by getting the Denon on the WLAN...
I just bought a Netgear Wifi adapter (refurbished from Amazon for $29)
I will let you guys know how it goes once i set it up.
I have a Netgear WNDR3700 router hard wired to a DENON AVR1613 and it seems I have the same issue with AIRPLAY icon dropping of apple devices. It seems to be more consistent now after a firmware upgrade that has happened a few weeks ago with my denon 1613. My current solution is to remove the LAN cable and reconnect it back to the router whever it keeps happeneing and is a pain.
"Intially it was connected through a switch and I thought that was the cause of the problem built it seems the issue persists even when connected directly to the router. It definitelyseems to be a AVR 1613 issue"
FYI.... I have a MARANTZ SR7000 seriesreciever which is also hard wired to the same router but does stay connected to AIRPLAY all the time.
After having installed the "Netgear Wifi adapter" (refurbished from Amazon for $29) This product: http://www.netgear.com/service-provider/products/wireless-adapters/wireless-n/WN CE2001.aspx#
...The problem is resolved, no more drop offs from AirPlay. Looks like the thread i read about my router having issues transfereing data from WAN to LAN was right. My solution was to get my receiver also on WAN.
I'm sure other alternatives to the NetGear would work... but that's the product i bought.
Hope this helps you guys!