Large iTunes Library Streaming Issues

I left sync on and it filled up the 40GB drive with about 7,000 of my songs.
I then went to the sources in Apple TV and selected my iTunes library for streaming. The screen displays:
Loading "iTunes Library" and the spinning icon shows for about five minutes. My screen then goes blank, and the AppleTV resets itself. When it comes back on it asks me for my language choice, and then asks if I want to recover my AppleTV, continue, or reset to Factory settings.
I have tried this a few times with the same results each time. Any help is very much appreciated.
Hardware - Apple TV, Mac Mini, 500gb external drive with music and movies
Network - Linksys cable modem and switch with a wired connection to the Apple TV.

Well the journey continues. I "factory reset" my Apple TV last night after another unsuccessful attempt to stream my music through Apple TV. It can see my iTunes Library under "sources." It says that it is loading and then after six minutes or so (I timed it) it restarts the box and presents me to select my language preference as it did when I initially installed the AppleTV. Once I do this it gives me three choices. I can "Restart" or "Restore Factory Defaults" or "Recover". If you chose "Restart" the machine reboots again. If I try and stream again, six minutes later I am asked what Language I want. If I try recover, it tests the system and says everything is good. I decided to perform a Factory Reset, and this did not work either.
I have a large iTunes Music Library, and have been using it successfully streaming through Elgato's EyeHome product for a couple years. We have had issues with new software updates, but they were very quick to provide solutions.
HERE IS WHERE I AM CURRENTLY AT:
I went to my computer, turned off iTunes, went to my iTunes folder and copied all of the files from the iTunes directory (remember my music is on an external drive) to a folder in another location. I was surpried to see my iTunes.xml file was over 150mb in size. I then restarted iTunes and of course had no music in it. I am now importing my file library in again to see if it helps. Maybe I has a corrupt iTunes file.
Anybody else with any ideas? Apple?

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    canadianbluespower wrote:
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