Q: Streaming iTunes content via Apple TV: after 4 minutes or so the content drops out and I have to restart, then another 4 minutes and it stops. Possibly related: latest software update attempts give the message 'not successful, try later'.

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.

The following article(s) may help you.

Troubleshooting Wi-Fi networks and connections 

Recommended Wi-Fi settings

Sources of Interference

Wifi Diagnostic Software (for Mac users)