Ethernet and ATV2

Recently my ATV2 updated itself to iOS 5.3. Lo and behold the thernet connection I'd been relying on to make the thing work properly stopped working all together.
What happens? The ethernet connection shows an IP 169.x.x.x. If I plug the same cable into my laptop it works fine and the IP is in the normal range for my network. So it isn't likely to be a problem with the router.
The ATV works OK on the wireless network, except that, if the computer goes to sleep, the AirPlay connection is lost and I have to restart the ATV to restore the connection (see the dicussion here, https://discussions.apple.com/message/21514171#21514171).
To make matters worse, I don;t seem to be able to restore an earlier version of the TVs iOS.
Can anyone help?

I found exactly the same problem and discovered the issued disappeared when I "quit" all "downloading" programs whilst watching TV via ATV2. The issue was particularly frequent when i was watching while downloading using my torrent client (utorrent). Quitting this resulted in a immediate an permanent improvement provided the torrent client remained closed. Interestingly it did not seem to affect, to the same degree listening to music through iTunes while downloading!
After experimenting I also noted that the problem existed, albeit less frequently, when i was downloading movies from the iTunes store. I experimented with a variety of Apple and non-Apple routers and ethernet cables. As long as i was downloading there was an issue using the ATV. For what its worth I also noted that when the ATV2 went awry it also occasionally coincided with a temporary outage on my ADSL connection. After all the experimenting i have concluded its the ATV2 that is the route cause and not the router/network arrangement etc.
Anyone want to try fixing the problem this way? i cant believe that its a coincidence.

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