Ipad mini remote app will connect to my itunes library and apple tv but won't display content from itunes library on the apple tv section of remote app

What I am trying to do is very simple, and I am sure I have done it before.

I have an Apple TV (2nd Gen) connected to Wifi Network (Airport Extreme 802.11n) I want to stream content from the itunes library on my macbook pro over the wifi network to the Apple TV. This works no problem, home sharing is set up and I can see the itunes library under 'Computer' on the Apple TV interface. I can use the Apple Remote to scroll through and play content from my itunes. Works no problem.

Now I want to use the remote app on my ipad mini to control the apple tv. Using up to date app (Version 3.01) Again, everything looks like it should work. I have turned on Home Sharing on the remote app settings. It works fine and both my itunes library and Apple TV show up on the interface. I can touch the itunes icon and control the itunes on my computer and play music and video on my computer screen.

Now when I touch the apple tv icon I can't see my itunes library content to play on the apple tv. I see the below image. If I tap on the icon in the bottom left it takes me back to the screen in the first image. What is the strangest thing is that I can control the apple tv using the gestures interface! This isn't what I want though and I want to be able to see the itunes library on the screen of the ipad and play it on the apple tv. You can see in the video on this link (http://www.youtube.com/watch?v=UvEpgcE9KCs). This is what I am trying to do and I just don't understand why I don't get the screen seen at 1:25 in the video. Instead I get the screen seen in the below image. Any ideas? I know that the remote app is connecting to the apple TV because I can control it using gestures, just strange I can't see the content on the ipad like in the attached video clip, instead I see the screen in the image below. Any ideas would be greatly appreciated!