Home Sharing with Apple TV2 Broken After 4.2 Update

It looks like I have some company with at least similar issues. This is very frustrating and support was no help.
ATV 2 worked just great with Windows 7 64-bit and iTunes library until the 4.2 update was loaded. Now ATV 2 keeps telling me to turn on home sharing on a computer but it's already on and iTunes is running, I'm using iTunes 10.2.1.1 and Apple TV2 with latest update 4.2 (2060) and connection over WIFI. Home Sharing is enabled on my computer and ATV2 using the same Apple ID and password. I can get to YouTube and the iTunes store from my ATV 2 without issue.
I've attempted many solutions from what I could find online but no luck:
1. Turned off/on home sharing on both the Apple TV 2 and in iTunes (multiple times)
2. Re-entered my Apple ID and password on both ATV 2 / iTunes
3. Restarted iTunes and ATV 2
4. Restarted the DSL modem/router (ZyXEL PK5000z)
5. Turned the firewall completely off (Norton Internet Security - firewall is off in router)
6. Restored ATV 2 over WIFI
7. Reinstalled iTunes
8. Changed my Apple ID and password then reset in iTunes and ATV 2
9. Renamed my itunes library
10. Disabled QoS upstream/downstream protocol in my DSL modem/router
11. Restored ATV 2 through USB connection in iTunes. This worked for a few minutes but after I turned off ATV 2 and later tried again it was back to it not working...
Any other ideas?

Well, I tried a few other things and one worked but again just the first time I tried connecting to the desktop PC with iTunes. I flashed my router with the latest update and the ATV2 could see the iTunes library and I was able to play media. Later in the day I was going to show off to my daughter that I had fixed it and, to my dismay, no go. I tried opening the suggested ports but no luck.
I then tried loading iTunes on a Win7 laptop and it works perfectly with the ATV2. Both the laptop and the ATV2 are connected to the router wirelessly while the Desktop is connected to the router by Ethernet. Not sure if this is part of the issue as it sounds like this didn't work for others. The only other difference between the laptop and desktop is that the desktop has Win7 SP1 loaded while the laptop does not; now I'm scarred to load it though I don't think that's the issue. All in all, a very vexing situation. Hopefully Apple comes up with a solution soon.

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