I have actually tried this, I connected a Belkin wireless router between my wall ethernet plug and my iMac. The Wi-Fi is working, my kids can connect to the internet with their laptops. And my iPod Touch can see and connect to the Belkin as well, and will control my iTunes library via this connection. HOWEVER, my Touch cannot communicate with my ATV through this connection. I launch Remote on my iPod Touch, select Add Library > Apple TV, but when I go to the Add Remote settings in ATV it is still greyed out, I can't select it or enter the 4-digit code. I'm still stumped, I don't know how you wired ATV folks are getting your iPods to work as remote controls.