Apple TV 2.3 Network Issues

Question

I recently updated to 2.3 and am having all sorts of network issues. I never had any problems prior to 2.3 and if I do a "Restore Factory Settings" then everything seems to work right, but I would like to have 2.3 in order to be able to rent movies, etc.
The problem that I am having is that the AppleTV typically cannot see the wireless network. This is not a distance issue as it is pretty close to my Linksys N router. I can use other devices with high signal strength right next to the AppleTV, and I can use the AppleTV on the older software without any problems. I've checked for interference, and the channel that I'm running the wireless on is not in use in my area so I am very sure this isn't a router / wireless issue. I have several other devices including two iPhones and my Mac Pro running on this connection with no problem.
If the Apple TV does see my wireless network then it frequently cannot get an IP address through DHCP and chooses its own address in the 169.x.x.x which is not even the subnet I am using.
Again, everything works fine on the old version, but 2.3 gives me these problems. It seems like I can't go back to 2.2? That was working fine as well.

Answer 1

I've had the ATV not be available on the network a couple times since the update, but its always repaired itself after a restart of iTunes on my primary machine. This same machine however, won't stream audio to the ATV via AirTunes even while the ATV is being seen. I'm getting a combo of the dreaded error code -15000, and no response from the connection when initiating using the ATV as a speaker.