Is this mean that my Apple TV is broken?

Hi All,
I have an 160 GB Apple TV connected to an Ethernet network, and the PC I am trying to transfer my content from is connected to the same network. It is taking a ridiculous amount of time for the content to sync. Music alone, which is 304 songs and 1.6 GB, was running for about 4 hours, and was approximately half way done by the time I went to bed. In the morning, the transfer had completed.
I am now transferring TV shows, and the first show has been transferring for about 4 hours, and the progress bar is still at about one percent (an estimation).
Obviously I have a problem The network seem to be working fine, as I have good internet speeds, and other transfers, through the same switch are fine. I have reset the Apple TV, restored factory settings and reinstalled iTunes. None of the things have helped. Apple TV diagnostics reported everything as okay too.
I am concerned that maybe the HD in the ATV is going bad. What do you think? Any suggestions, thoughts or troubleshooting tips are welcome!
Thanks.

Do you use a proxy server ?

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