Apple TV Wireless Troubles

I have a home network with 2 Apple Airport Extreme Gigabit N routers. One is connected to my cable modem and is the "main" router handling the DHCP, etc. The other APX is at the other end of the house in my office and is connected by ethernet cable to my Mac Pro and my work PC. In the middle of the house I have an Airport Express N that is extending the network due to poor connectivity without it. I know that is a lot of routers but the speed drop is not too bad and without it I have poor wireless connections, dropouts, etc. Everything is running at 2.4 ghz 802.11n, b/g compatible due to my wife's Powerbook and our son's Windows machine, both of which are 802.11g only.
Problem is that my Apple TV which is located right beside the main APX router can't stream or even sync properly with my Mac Pro when running in wireless network mode. As stated, the setup puts the ATV and Mac Pro at opposite ends of the house but the ATV shows good wireless signal level, presumably from the APX that is right beside it. However, you can't watch a movie or TV show streamed from the Mac Pro or even listen to music without many pauses, time-outs, lockups, etc. However, if I plug the ATV directly to the APX with ethernet then everything works great. I can ping the ATV wirelessly from the Mac Pro and get 10 clear pings in the 3-7 ms range, usually averaging 4-5 ms.
The local Apple store says the ATV is working fine since it will stream from their Macbook when the 2 are sitting next to each other.
My question (finally, sorry) is that should the ATV automatically be connecting wirelessly via the closest APX router (the same one I plug into via ethernet) or could it be trying to stream via one of the more remote routers hence the poor performance. If so, is this typical and correct performance or should I be going back to the Apple Store and insisting on them fixing the situation.
Also, the ATV can stream from the internet - iTunes, HD movie trailers, download TV shows etc just fine. This is confusing since this should be using the same wireless connection as streaming from the Mac Pro unless for some reason streaming internally causes it to select a different router.
Thanks and Best of the Holidays to everyone.
Message was edited by: MikeK5117

Vazandrew,
The Apple TV was working perfectly before this change.  I did not do any setting changes on the HDTV.  All the problems I have had just recenly popped up.  As I stated, I cleared the "ERROR OCCURRED  LOADING CONTENT,  by power cycling the Apple TV and my WiFi modem per https://discussions.apple.com/message/24372796 and the only item I did not perform was the RESTART/RESET step because I was able to stream a Netflix program without receiving the Error Message and that cleared Problem #1. Problem #2 was the Display size issue.   That is why I asked about the RESTART/RESET question.  This Apple TV has been functioning perfctly for over a year and I just wanted to research (whether you advised me or you povided me with an HT Document) hwhat I needed to do to re-establsh the Apple TV TV back to working like it was, if the RESTART/RESET set the Apple TV to virgin state. 
I will try toggling the the Resolution and I will chek on how to access the HDTV's Picture settings.

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