THis is what I finally got to work. I turn off and completely disconnected my Apple TV 2, all wires pulled out, turn off my iPad 2 and iPhine 5 and then reconnected the Apple TV , put it in confereneve mode and then turned on the iPad and iPhone.
I could then use AirPlay with my iPhone but not my ipad. Even on he iPhone, I could not get my home screen onto the tv, could only play cached You Tube video. I could not stream You tube. I use MacTube Pro.
i found that the airplay would not work at all with the apple TV on Ethernet.
I can stream anything from my imac using AirPlay but have trouble with the Apple TV connecting through my home network.
The annoying thing is that why are we fluffing about here trying all different things when Apple shoild be fixing it!