Apple TV / Homeshare no longer working

I've got a 2nd generation Apple TV which has been working perfectly well for nearly a year. It's got the 5.1.1. update.  iTunes has the 11.0 update and is on an iMac running OS X 10.7.5
Since yesterday, whenever I go to the Computer menu, Apple TV keeps telling me that I need to switch Homeshare on in iTunes and won't progress beyond that. However Homeshare IS turned on in both iTunes and Apple TV. I cannot see my libraries for music/tv/film at all and it also says it cannot find my photostream. 
I have all the latest software updates. I've tried switching homeshare off and back on again in both iTunes and Apple TV. I've tried rebooting both the Apple TV and my iMac and also rebooted my router for good measure. Nothing has worked.
The only thing I can think of that has changed between Apple TV working perfectly and now not working at all is the upgrade of iTunes to 11.0 and looking over on the iTunes board there seems to be one **** of a lot of issues with homeshare.
Where's Apple to comment on/fix this?  As it stands, my Apple TV is an ususable chunk of plastic.

Thanks for the quick responses.
I have pinged with speedtest several times when the download gets hung up. The results for my lowest result so far are download: 4.96 Mbps and upload 5.25 mbps
I Have not checked signal strength and noise, I will look into that in a little bit.
THis is problem has developed in the last few days. I have never experienced a problem before.
I Have not experienced the same issue with movies I have purchased as I have with movies I have rented.
thanks again for any assistance you can provide

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