Lose Apple TV wireless connection with latest Apple TV update

I purchased a new IPhone yesterday and tried to set up the Apple Tv software to use the Iphone as a remote. This involved updating to the Latest Apple TV version 2.1. However once I carried out the update the Apple TV lost connection with the Wireless network and displayed an ip address 169.xxx.xxx.xxx . I manually set up the system to the 192.168.1.xxx subnet and the Apple TV showed up in the Router client table but I wasn't able to ping the Apple TV from the router and the Apple TV had no connection to the internet and would not appear in Itunes devices.
I reloaded itunes and reset the Macbook pro etc but no success. I then restored the Apple TV to factory settings and it reconnected on version 1.0 . I then tried a further software update on the Apple TV to 2.1 and once again I lost my connection to the Local wireless network. Same DHCP address 169. xxx etc.
Can anyone help me to either get the Apple TV to connect under 2.1 or tell me if it is possible to restore the Apple TV to the previous 2.0 software which at least gave me the lastest updates without the iphone remote facility.
Apple TV worked fine on Version 2.0
Really getting anger with the continual crashes and bugs on the software updates now.
Mac OS X (10.5.4) MacBookPRO
iTunes version 7.7.1 (11)
Apple TV (2.1)
Appreciate any assistance
regards
Alistair Old

Ok Guys here's what i found.
*1. Disconnected ethernet wired connection, soft reset apple tv.*
ATV Continued to work and kept ip address 192.168.1.10x
*2. Moved Apple Tv unit back to original location and did a power reset.*
ATV Continued to work and kept IP address 192.168.1.10x
Tried movie trailers etc. everything still functional could see in Itunes devices etc.
*3.Power reset router*
ATV Continued to work and still had correct IP address
*4. Powered down all network devices including the Router. then powered up router and brought up all devices individually , bring up the Apple Tv last*
Router DHCP client list showed Apple Tv with IP address 192.168.1.104
Apple Tv network setting showed DHCP ip address as 169.xxx.xxx.xxx
Apple TV could not see internet and I couldn't ping the apple TV from the router
*5. Plugged in the Ethernet cable to Apple Tv and Router*
Network setting on Apple tv instantly changed to ethernet and showed correct IP address 192.168.1.104 from DHCP on Router. Unit burst into life and connected to Internet.
*6. Disconnected ethernet cable from Apple TV.*
Network settings showed wireless network but no information on IP addresses etc just had N/A
Did a soft reset and all parameters appeared and they were now correct with IP address 192.168.1.104. apple tv once again started to work and showed up in Itunes.
7. Final config is Wireless and things seem to be working but it would appear that when I intially set up the apple tv under 2.1 I have to first connect via ethernet to get the apple TV to configure with the correct IP address on the Wireless network otherwise it auto configures with a 169.xxx.xxx.xxx IP address and doesn't appear to be connecting to the network.
Please let me know if anyone else sees the 169.xxx.xxx.xxx address when they initially connect to the wireless network with ATV version 2.1.
I would like to understand whether I have a unique problem or if others are seeing the same thing.
Hope this helps , at least I seem to be able to use 2.1 and the iphone remote facility now , even although I have to mess about with the network setting to start with.
Interested to see what anyone else comes up with
Cheers
Alistair

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