I finally figured out how to solve this problem. Air play uses port 5353 for AirPlay which is normally blocked by AVG firewall. http://support.apple.com/kb/TA21543
I unblocked port 5353 in AVG (v10) using this method
1. Open AVG
2. Go to Firewall settings
3. Click on "Tools/Firewall Settings"
4. Go the the Profile you want (Small Home or Office Network, ect.)
5. Click "System Services"
6. Under "User defined system rules" Click "Manage user system rules"
7. Click add
8. Make sure you have the settings the same as the following
protocol - UDP
direction - Both ways
local port - User selected port (enter 5353 as the defined port)
remote ports - Same as local port
remote address - local network
9. Name the Rule
10.Click OK, (You should see the rule listed now) then OK again
11. Click Apply and restart iTunes
Hope this solves your problem 🙂
Taylor