Does AppleTV need a constant internet connection?

Do you need to be connected to the Internet via Airport all the time for Apple TV to work at all?
I have TV shows recorded on Ice TV and then exported to iTunes.
I connected to the Internet initially to set up the AppleTV device and was able to watch a show but now it connects to the network but either doesn't see the iTunes library or has a spinning wheel for AGES and then says to turn on Home Sharing but it IS turned on!

in the home sharing support page it says that a wifi or ethernet connected to a home network with an active internet connection is needed in order for home sharing to work.
if there is a way around this i would really like to know... i posted a thread 4 days and askd if a network is needed (wifi or wired) for an apple tv 2 to work. and the replies i received confirmed that i need to have an internet connection for the apple tv 2 to work.
as for for "winstons" question. my entire itunes library is stored on a nas drive connected to my airport extreme. i have no problem in streaming "content" ie movies, music & photo's to my apple tv 2. in fact it has worked flawlessly for the last 6 months that i have had my apple tv 2.
i also was hoping that an active internet connection wasn't needed in order for my apple tv 2 to work, so i disconnected the modem from my router to see if i could still stream content to my apple tv... the apple tv could see my library on the nas drive but could not access it. once reconnected the modem it worked again. so if there is a way around having an active internet connection in order for the apple tv 2 to work i would like to know myself.
thank you

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Does AppleTV need a constant internet connection?

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