Apple TV dropping WiFi connection every two minutes

Hey there,
So I bought an Apple TV a couple days ago. Product looks great and looks absolutely gorgeous on the TV I have. My only problem (and its a HUGE problem) is that the device drops my WiFi every two minutes. Specifically when watching videos.
So in effect I cant stream any video - be it from YouTube, iTunes, NFL, Vimeo or even over AirPlay - because every time I do the signal drops and I'm thrown back to the main screen.
My WiFi pretty good. I have an iPhone, an iPad, two PC laptops and a Samsung smart phone that use the same network without any issues.
Please help me with this problem. I really really like the product but its practically useless with this issue.

Other devices working doesn't rule out a network issue.
Try connecting Apple TV via ethernet
Go to istumbler, netstumbler or similar to get a network report. Look for signal strength, noise, and nearby networks.

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