apple tv keeps dropping home sharing connection.

I have this problem too. It worked perfectly until the last ATV update and now it's absolutely useless. Come on Apple, sort it out please.

I have the same problem. The Apple TV (2012) simply cuts off playback and shows a message that Home Sharing needs to be enabled on the PC (Win7).

What works for the short term is to start playback on the PC and stream the video to your Apple TV using AirPlay (bottom right in iTunes). You can do this using the Remote app too if you will, however that requires Home Sharing to function.

Update to iTunes 10.6.1 http://support.apple.com/kb/DL1426

Or run Apple Software Updater

Already running iTunes 10.61.7.

If I reset the ATV, then it re-finds my iTunes library. This would seem to indicate that the problem lives with the TV unit and not iTunes. I have also rechecked windows firewall and all seems to be OK there.

I'd suggest a quick restore Settings > General > Reset > and Restore

Restore not Reset all settings and have it redow load the firmware it could possible fix it and you can tell Apple Care you already did it if that doesn't fix it.

Same, latest version of iTunes here.

I fixed my problem by uninstalling iTunes through this link:

http://support.apple.com/kb/HT1925

I have a sneaky suspicion the problem was the Windows firewall however. You might want to try removing iTunes and Bonjour from the exception list and readding them later.

If your have a lot of Wifi networks nearby possibly causing interference, it be best to set if its a 2.4 GHz network to try to set 3+ channels away or the most you can from nearby WiFi networks and change from 40MHz to 20 MHz.

http://www.meraki.com/products/wireless/wifi-stumbler you can see how many are around you.

The apple TV is hardwired to my computer, not wirelessly connected

If I reset the ATV, then it re-finds my iTunes library. This would seem to indicate that the problem lives with the TV unit and not iTunes. I have also rechecked windows firewall and all seems to be OK there.

Ihave just uninstalled everything Apple on my PC and reinstalled it. I'll see if that works

Pennytown you don't connect it to your computer that won't work you need to connect it to your Router with Ethernet or WiFi.

Apple TV<Router > Computer

Not Apple TV - Computer

Same thing here, I exchanged another ATV3 after called support, tried restore, reset factory setting.

Airplay from iphone and ipad worked for around 45min and cuts off or whole movie without drop if I am lucky, need to restart ATV3 all the time just to bring back airplay only.

I gave up on home sharing from itunes in my OS X (which is not pick up itunes at all times). just desperately waiting for Apple have update on fixing it.