Apple TV receives Airplay feed from PC but doesn't read iTunes library

Picked up a new Apple TV this week and haven't gotten Home Sharing to work reliably at all between it and my Win7 PC. My only workaround has been through Airplay and the Remote app on my 4S.
So far I've:
- Opened all relevant ports on my router (Home Sharing still drops after one file is read - regardless of format or length)
- Set up appropriate rules for iTunes on my firewall/disabled it (Home Sharing disconnects after one file)
- Reserved IP addresses for all my network devices (no change)
- Rebooted everything a gazillion times (works for one song/video, then loses it)
Everything is running wirelessly with strong signals from the router on every device.
I believe the problem originates from my computer's end of the Home Sharing setup. Once I get a video going on the ATV, I use my iPhone's remote app and notice that my PC library eventually disappears from the available devices in the list. Searching through the ATV's "computers" tab in Remote gives me the following message: "Remote will automatically find the iTunes libraries that have Home Sharing...". If I stop the movie, the ATV still lets me browse my PC library but doesn't actually load any of the media selected. Eventually it realizes it's not connected and gives me the "activate Home Sharing" message as well.
However, when this is all said and done, Remote and Airplay have been working fine. I can access my library through the Remote then get my PC to Airplay the media to the ATV without a hitch. Managed to get 3 videos to play end-to-end and listen to an entire music album. The only weird thing is my library icon on the Remote greys out for some reason but it still connects and plays everything when selected.
Any thoughts would be appreciated.
Thanks!
mc

You need to add all the music files into the blank new itunes library.
Either have 2 windows open (itunes & win explorer), and drag the files from Win Explorer over into the itunes main library window.
Another way is to use the itunes menu > file > Add Folder to library and add your top-level music folder.

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