I had a similar issue as you did and I resolved the issue by doing the following:
As I have my entire Itunes Library on a 2 tb Windows 7 Machine using a cable modem attached to a new AppleExpress router, after many trial and errors it hit me that I'm using Windows 7 built in firewall along with the hardware firewall built into Airport Express. Seemed like Homeshare was being throttled down by 1 of 2 firewalls.
I simply turned off the Windows 7 firewall and have had no more issues with homeshare.
Or the ATV broadcast is not being received. I have an ATV2 and an ATV3 both using wired ethernet, previously the ATV2 had been used with wifi so it had an entry in the access control list on my Airport extreme. The ATV2 never had any problems finding the homeshare when coming out of sleep mode but the ATV3 always required a restart until I added it to the access control list. My theory is that the ethernet port gets powered down in sleep mode but the wifi port is used to conect to the bonjour sleep proxy running on the Airport extreme. I can see the IP address of the ATV3 toggling mac address's in arp logs on my network.
Anyway adding the the ATV3 to the access control list worked for me - maybe of use to someone.
Well it's been almost a Month now and my Apple TV2 still only Plays one or 2 songs, and then hangs. I have been in contact with 2 different Apple Technicians. They have tried everything but nothing works. I have tried telling them that it all started with my upgrade to iTunes 11, and the only problem I have is with homesharing, but they will not listen to me. They are do not acknowledge what I am telling them although they are very polite and time is no problem. I would guess that I have spoken to them for almost 20 hours. They are saying now that it is probably because my network is too complicated. Everything else on the ATV2 works perfect (Netflix, YouTube ect) on the same network. I also have a Synology Diskstation from which I can stream music, films podcasts everything without any problems whatsoever. Everything is connected with Gigabit Ethernet. They are ringing back tomorrow, but I actually told him yesterday that I was ready to give up and use my ATv2 for Netflix, YouTube ect, and use my Diskstation for streaming my music and videos. I actually had the same problem when Apple upgrade iTunes to 10.00. The problem persisted from November 2011 until February 2012 when iTunes was upgraded to 10.50, and hey presto ok
Think if they do launch an Apple 40 inch TV which may cost £1500, and then do their software update and render it useless.
I would have sworn blind and argued with everyone until i was blue in teh face that it was an apple problem, but on another forum I got some help and removed my second router and airply has been bulletproof for coming on 24hrs now.
Normally it would disconenct after about an hour.
Let us know about your hardware setup and we might be able to help
Seen and experienced this issue over and over. I can only explain what worked for me.
Changed my Cisco router for Airport Express.
Dropped firewall from my windows 7 machine and kept hardware firewall up.
I made sure homeshare was turned on from file option in Itunes and used the Apple TV only.
I use a cable modem for internet No DSL!
Apple Tv is set up in a room 40 feet from Airport Express.
This has worked for 3 weeks now.
Thanks for sharing your experiences. Can you give us some more info? I too have a 2nd router that is a non DHCP router...I just use it to separate by B/G devices from my N....so are you saying this is what may be causing some of the issues?
Just to disclosure, Im not having nearly as many issues as most of you...I have the "Apple TV3" disconnects from my library when I wake it up and the slower performance bandwidth issue on Wifi...
Last April I posted that I was also having the same problem. At some point since then I was able to get it working and have not had a problem since. This is how my network is set up:
All of my movies are on my Synology NAS connected to a Netgear 5 port switch which is connected to my main router (Actiontec). My iTunes shared library is on an Acer Aspire R3700 running Windows 7, also connected to the Netgear switch.
I have an ATV3 connected to my Actiontec router, and an ATV2 connected to a Linksys WRT110 router, which is connected to my Actiontec router.
My entire network is connected via ethernet and all IPs are static. All of the settings on my computers and routers are pretty much default.
I've posted a number of times to this site, mostly to report that, by having my ATV2 connected to a Billion router via ethernet cable, I have had no trouble with the connection. I have never been able to establish a reliable wireless connection.
But all that's changed recently—I think with the upgrade to iTunes 11. Having changed nothing I now find that the connection drops out when either the ATV or the computer goes to sleep. The only way I can restart the connection is by restarting the computer.
It is really very tedious.
Another bug with OSX ML: Wake on LAN does not work!
Nevertheless, the dropouts will also happen if your Mac does not go to sleep. There are tons of threads complaining about this...
Maybe iTV will work better - I guess they have enough work getting that hardware on the market - no time/interest to deal with "old" stuff...