Windows 7 and Apple TV- can't stream video

Question

Hi:
I can't stream video from itunes on a Windows 7 pc, to Apple TV (3rd generation). The ATV is only a week old but has been replaced with no luck. When I try to stream video, an error message pops up: "An error occurred while connecting to the AirPlay device Apple TV. The network connection timed out".
- the ATV is not the issue as it was replaced
- I can stream audio and photos from itunes, but can't stream video (which is in the proper format for ATV)
- I installed itunes on an old xp machine and video streaming works!
- both the xp machine and the Win 7 machine are on the same network, so the router must be ok
- all firmware and software is up to date and everything has been rebooted (several times)
- the error happens no matter if it is a wireless or wired connection
Since XP can successfully stream video and is on the same home network as Win 7 and we know that both the ATV and the router are working properly, it seems to me that there must be an issue in my Win 7 config. Does anyone have suggestions??? Thanks!

Answer 1

This is what is happening:
With an iTunes playlists of about 13,000 songs, one song will start playing (with a huge lag before the cover art appears); when the first song is finished, a second will start with the cover art for the first song still on screen. Eventually the screen goes to black, the time bar for the seconf song will pop up and after a few beats the art for both and first AND second song appear on screen together. A moment later, the audio cuts out, the screen goes to black againand eventially the AppleTV homescreen pops up. I've tried the fixes I've read about on this board; restarting everything (AppleTV, MacBook, etc), closing and reopening Home Sharing on the all the devices, doing a restore on the Apple TV, etc. Everything worked fine until I installed the update.