My apple tv(3rd Gen) total screws. connection always break down, nothing changes on the setting!!! no movies, no iTunes, only seconds than it is gone!!

One month after purchase and perfect functioning my apple Tv is screwed! I can not stream any content to since the connection always breaks down after second, also itunes etc cannot be accessed!!
I did everything, changed Routher channels to all possible options(13 different and although everything worked before), resetted at the PC ( Was not possible to wifi, connection broke doWn), also resetted the Router. I switched of HD and all kinds off things, no sign of change!
I found out that actually some apple TV's have a problem with the wifi chip, might be one of those?
Contacted Apple, they are exchanging it against a used and repaired one?!?! Hello?! It is one month old!!!! No scratches!! And I still had to wait before they checked mine!!!
I want a new one!! Support is an hilarious excuse for a company that sells this kind of quality image!!! I am hugely disappointed!!
Did anyone else have this kind of problems?

So you are having a network connection issue. Have you run the network diagnositics to test the connection? Have you trying using a wired connection to isolate if it is a WiFi issue?
I can not stream any content to since the connection always breaks down after second
How are you streaming? AirPlay? ATV menu?
I can not stream any content to since the connection always breaks down after second, itunes etc cannot be accessed!!
Is homesharing enabled?
I did everything,
Clearly you have not done everything since the problem has not been found. Lets try to stick to reality here.
I found out that actually some apple TV's have a problem with the wifi chip, might be one of those?
It is not likely if you just bought it new. You can google for the model numbers that were specificly recalled though if you want to check.
Did anyone else have this kind of problems?
A lot of the issues posted are network related. Most come down to WiFi issues. Streaming video rarely works well over WiFi unless you have extremely high end WiFi hardware to support it. Any streaming video product will work better connected via eithernet.

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I have one Mac with my digital library running iTunes 11 and seem to be having problems keeping Apple TVs connected (via home sharing) when I get up around 10 Apple TVs on the network.
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Apple TV is by it self in a category.
With Apple TV 1 the limit was 5 Apple clearly stated that. The reason? Probably because the Apple TV 1 had a hard drive and was able to store content locally (quite a bit actually). This would make it more in line with authorized devices.
You authorized device limit is 5 but this does not pertain to home sharing again something different.
When you play content from an Apple TV you are streaming from an authorized device and as long as you have the same iTunes account on that Apple TV as the iTunes you are connecting to you will be ok.
Now to the error. I have also had this error and I had it on a network with only 1 Apple TV connected and it is since iTunes 11. It seems every time Apple updates iTunes it has a bad effect on Apple TV. So I would not relate this error to the number of Apple TV's you have, every time I get this error I restart the Apple TV and its fine again.
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.

No app I'm afraid.
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Apple TV: About the status light - Apple Support
Flashes quickly
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Apple TV (2nd and 3rd generation): Restoring your Apple TV - Apple Support
Cheers,
Mario

My apple tv(3rd Gen) total screws. connection always break down, nothing changes on the setting!!! no movies, no iTunes, only seconds than it is gone!!

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