Hi
Are you sure it is the Apple TV2? Just before Xmas I upgraded to iTunes 11. Prior to the upgrade everything was working fine, but now there is a problem with home sharing, and I can tell you that I had the same problem when I updated to iTunes 10, and that problem was not resolved until Apple upgraded iTunes to 10.6,( approx 3 months) which is the server for the Apple TV2. I can stream films from Netflix without any problem in fact use any of the apps on my AppleTV2, but when it comes to using home sharing it will play one song, then I go into my study deactivate/ activate home sharing play the next song and so on. If it is a film it streams the film until the end then lose the connection with iTunes. Frustrating!
Wrote an e-mail to Tim Cook last Thursday 30.02.13 explaining the situation. You'll never guess what happened next.
Yesterday I got a phone call ( no not from Tim) from Apple in Ireland and they connected me with an Apple senior engineer, with whom I spent nearly 45 minutes talking to. He tried lots of tests to no avail. He even listened to songs over the telephone to here when it lost the connection. By the way if you restart the Atv2 you also get the Home sharing connection back. He tried AirPlay and that worked perfectly.
In the end he said that he will investigate further and then ring to me at 10:00 am today the 5.02.13. He also said that it was highly improbable that it was a network issue and that it was most probably a software problem.
That's what I call service, and they have ensured me that it wont cost me a single penny, the service is gratis/without payment.
I am just waiting for him to ring.
Kind regards