Apple TV loosing connection to TC.

My two Apple TVs cannot stay connected to the Time Capsule. Everything worked fine with the AEBS but the connection keeps getting lost with TC. The Apple TV shows that the network connection is fine but no internet connection is available (no itunes store and no Youtube). Once the connection is lost I have to reset the TC and start from scratch to get the reconnected. Any thoughts?

I am having major issues with TC and ATV. I just got home with my second TC (exchanged for new one assuming my first was a dud). My problem is that ATV will not stream video from itunes over the TC network. I haven't even set up TM on any computers, so it is not competing for bandwidth. I simply unplugged my APE, plugged in TC, connected computers and ATV to network - NO STREAMING. Usually get error code after long delay stating "The selected video could not be played" "format not recognized".
I can go back to the APE and immediately get it to work.
The interesting thing is the signal strength for the computer (which has the itunes account) is only 2 bars with TC, but 3-4 bars with APE. I am beginning to believe the TC simply doesn't have as strong a WIFI signal. I am going to check with a wired connection to the computer and re-try.

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