Apple TV & Inability to connect to the Internet

My ATV connected to my macs using Time Capsule which is wire connected to BT ADSL using Netgear modem. After working well for few months suddenly dropped its internet connection. When I try to reconnect, ATV gives the error message " Internet connection fault - your ATV is connected to 'your' network but cannot connect it to the internet"
I have reset the ATV many times as well as restored to factory status but problem is persistent. I have reset my Time Capsule too without relief. This problem started when I attempted to synchronize my iTunes library after purchasing the movie Atonement. Internet connection to my iPod Touch & iMac is working well.Help is greatly appreciated as I am about to cry!
Don

No all my software is updated automatically using Apple Software update. As this problem persists I got a another Timecapsule and the problem exists. If you find a solution please let me know.
Thanks a million for your support.

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