Hi,
I have the exact same problem that you did. When I use the iPad in our family room where the TV and stereo are, Pandora often drops out for a few seconds. Sometimes it actually drops off and stays off, and when I swipe to se the settings, I can see that Airplay is no longer pointed to Apple TV, but has reverted to the iPad, even tho no audio is being played. (Pandora reverts to pause when this occurs.)
I checked that I had the latest version of Airplay, and upgraded my Airport Express firmware, which got me all psyched that you had pointed me to the Ultimate solution. Then I reset my iPad network settings, just to put the icing on the cake... But, alas, I stil get those cursed dropouts.
Our family room is only 40 or 45 feet away from the Airport Express router, so I should be getting great reception... However, I only get 2 bars there. My Apple TV works perfectly however, as far as streaming videos and playing it's built-in radio channels. If I put the iPad closer to the router ( in the dining room for example), then Pandora plays perfectly. But I can't sit in the room with the stereo, play Pandora and surf the Net without getting intermittent music.
Shouldn't the Airport Express deliver rock solid reception 45 feet away? Is the fact that I get 2 bars of reception the reason why Pandora craps out? I think it must be, since when the iPad gets 3 bars in the dining room, it works perfectly.
Anybody got a good idea how to fix this?
Thanks!