After 5.1.1 update, Apple TV knocks off Internet connection.

Connects fine to computer, Netflix or iTunes (though not to my iPod Touch Remote app). I see my Netflix queue and all the movies and music on my computer. But when I try to stream something from any of them, the spinning gear goes endlessly, and Internet connection is broken for all devices. I have to reboot modem and router.
Took it to local Apple store, he did a restore (which I'd already done at home anyway) and it worked fine there, including iTouch. Hooked it up at home, same problem. Apparently the update doesn't play well with either my router, the modem or AT&T. How do I troubleshoot this?
I have 2nd gen Apple TV, AT&T DSL (Motorola modem) and D-Link router. Everything worked fine for almost two years, until the latest update.

I am having hte EXACT same issue. I have been back and forth with iTunes support for 2 weeks about this. Its also throwing offf all my other devices and popping up the same message on iPhone and iPad. Im surprised others arent having this issue or are just not updating yet to the latest software. I found that completely logging out of my iTunes account on the Apple TV after "Verifying" my payment info stops the problem. BUT THEN I CANT RENT MOVIES! Great consumer experience. Annoy the **** out of people so then they cant use your product for its intended purpose. FIX THIS APPLE!
Sorry for ranting but this has been plaguing me for 2 weeks since the update and I use my Apple TV daily.

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