Apple TV randomly exits to title screen in the middle of a movie.

I'm getting this really weird issue, and no matter what I try I can't seem to find the source.
While watching a movie which is being streamed over airplay, at some point (It's completely random when it occurs), the Apple TV just randomly ports me back to the menu. When I go back to my movie, it starts it WAY back from where the movie was when it exited, meaning I now have to fast forward through tons of content to get back to where I was.
I stream the movie from my MacBook Pro, which is usually not plugged in, and I just have the screen dimmed via a hot-corner.
My first thought was that it was the sleep on the Apple TV, but shouldn't that not matter since I'm streaming a movie at the time? Sleep settings on the Apple TV should have no affect on that.
So I checked my laptop settings. My laptop sleep settings on the battery are like 5 minutes for monitor and like 15 minutes for the hard drive. That does not coincide at all with the Apple TV issues, since most times these errors happen well over an hour into the movie.
Anyone have any idea what is causing this? I have the new Apple TV with version 4.1.1 software, and I'm (obviously) streaming mp4 movies through my iTunes.
Message was edited by: Robert Bell

1- When I watch a movie, I make sure that there is nothing else going on with my network that could interrupt the streaming.
2- That could be the cause. Right now i'm taking AVI's and MKV's and converting them to MP4 and M4V's using "Handbrake". I use the Apple TV preset in that program, and just max out the quality so I don't lose any quality when it converts. I don't think it's an issue of size though, even playing 1080p high def movies streaming through my apple tv, I almost never see any sort of FPS loss or noticeable lag. Usually when this issue happens, it's just in the middle of the movie somewhere where everything is going fine.
3- Possible.
Yes I am streaming wirelessly over a secured network without anything else going on (network side).
All I do is turn my iTunes on, dim my display, start up apple tv and it automatically syncs to my iTunes library. From there I just select what I want to play. I'm not sure if that's considered "Airplay" since i'm not clicking on an airplay icon or anything, it's all just synced through itunes.
I may try connecting directly, but if that resolves it, i'm going to be pretty bummed. The main reason I got the Apple TV was to wireless stream this stuff.
Thanks for the awesome response!

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