My apple tv2 can see my library on my new Mac but will not connect to it.

I just made the move from PC to Apple Mac. Home sharing worked great on my PC but not on the Mac.
I have been through the recommended checklist.
My library appears beneath the "Computers" tab but when I try to connect I just get the spinning wheel

Yeah. You, me, lots of people.
The error message isn't helpful, as you've discovered. You begin to wonder such things as, "if iTunes 'wasn't running', then how can the AppleTV see its library? If iTunes or OS X wasn't up to date, why wouldn't the Apple TV do a quick version check on it and let me know?" And so on.
I started having this problem a few months ago, sometime around iOS 4.3. It's been a widely-reported bug here for quite a while, with usually a range of obscure things that work for some people and well, no one else.
So with that big caveat in mind, here's what works for me: reboot the Mac.
Here's what hasn't worked for me:
1) Restarting the ATV2
2) Restoring/updating the ATV2
3) Staying current with OS X, iTunes versions etc.
4) Rebooting the router, a 5th-gen AirPort Extreme (wired connection; the ATV2 isn't on WiFi.)
5) Logging out of OS X
6) Restarting iTunes
7) Turning off/re-setting up Home Sharing
Mine has a curious twist however: We normally keep our Mac running with two OS X users logged in and each iTunes running. The Apple TV2 sees them both but only can connect to whichever library was first opened. To "switch" to the other iTunes library in ATV2 we have to reboot the Mac and make sure the relevant user's iTunes gets launched first.
Our original AppleTV has never had this problem.

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